A prominent trader has shared his bearish sentiments regarding the trending meme cryptocurrency based on the Solana blockchain.
The trader, known by the alias Bluntz, shared that dogwifhat (WIFI) may need to undergo correction.
i think the macro 5 up from inception on $WIF might be done here, all waves accounted for and a long drawn out ABC probs underway before the next parabolic leg.
looking for probs rebuy my bags down around $1-$2 in between the 618 and 0.78 pic.twitter.com/rnszGOXbSF
— Bluntz (@Bluntz_Capital) April 4, 2024
According to the trader, who applies Elliott wave theory in his technical analysis, WIF appears to have completed a five-wave rally and now looks poised to enter an ABC corrective wave.
This collection looks plausible on analysis as the broader five-wave move at WIF has ended with all waves accounted for.
Based on Bluntz’s charts, it looks like the analyst is predicting WIF to fall to $1, about 69% below the current price, which also coincides with the Fibonacci retracement level of 0.786. In technical analysis, Fibonacci levels are used to identify potential areas of support and resistance.
WIF is trading at $3.45 at the time of writing, up about 69,356% from its opening price of $0.00478 on December 15th.
Bluntz also offered his prediction for Solana (SOL). According to him, Solana is in a corrective three-wave pattern that could see the fifth-largest cryptoasset by market capitalization fall by around 7% from current levels.
The analyst said a drop to $160 looks likely before the SOL price continues its uptrend. At the time of writing, the Solana is trading for around $179.
