dailyhodl.com
A trader known for making timely altcoin calls thinks that one memecoin is gearing up for a big upside burst.
Pseudonymous analyst Bluntz tells his 261,500 followers on the social media platform X that while he’s medium-term bearish on meme token dogwifhat ($WIF), he thinks the altcoin is poised for a big bounce.
According to Bluntz, $WIF is flashing multiple bullish signals suggesting that it may witness a relief rally before continuing its downtrend.
“Even though I think on high timeframe $WIF looks cooked and destined for $1, I also believe a 50% bounce first could be on the cards.
We can see five waves down from the $4 lower high and nice bullish divergences on the four-hour, eight-hour, and 12-hour [charts]. Expecting a countertrend ABC up to around $3-3.4 to rope everyone back in again. Shorting these levels definitely not smart in my opinion.”
Bluntz practices the Elliott Wave theory, a technical analysis approach that attempts to predict future price action by following crowd psychology that tends to manifest in waves. According to the theory, a bearish asset often witnesses a five-wave move down followed by a three-wave ABC correction upward.
Based on the trader’s chart, he seems to predict that $WIF has completed a five-wave move down and now looks poised to ignite an ABC bounce.
But after the bounce, Bluntz sees $WIF falling to around $1.
At time of writing, $WIF is trading for $2.57.
Generated Image: Midjourney