dailyhodl.com
A top trader has issued a warning about a popular Solana (SOL)-based Dogecoin (DOGE) rival, saying that the memecoin has more downside potential.
In a video posted to the social media platform X, the pseudonymous analyst known as Bluntz tells his 263,200 followers that technical metrics indicate the meme token dogwifhat ($WIF) could endure more corrective moves in the next three to four weeks.
According to the analyst, $WIF witnessed a 109-day uptrend earlier this year, leading him to anticipate a similar number of bearish days for the memecoin.
“We are [85] days into the pullback… In terms of time, a 1:1 extension… that takes us out to July.”
As for his downside target price for $WIF, the analyst says he will be interested in loading up on $WIF when traders capitulate as the memecoin drops to around $1 in price.
“So what I anticipate to happen is we have to keep grinding down. I think the 0.78 [Fibonacci retracement level] is going to get tapped… Ultimately, I think that would be an absolutely killer long-term entry on $WIF.”
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 bullish asset will often witness a five-wave upside followed by a three-wave ABC corrective period.
Looking at the trader’s chart, he seems to suggest that $WIF has already completed a five-wave rally and is now at the tail end of an ABC correction.
At time of writing, $WIF is worth $1.85.
Generated Image: Midjourney