A well-known trader recognized for his accurate predictions on alternative cryptocurrencies believes that a particular memecoin is gearing up for a significant increase in value.

The pseudonymous analyst, Bluntz, shared his insights with his 261,500 followers on the social media platform X, stating that while he holds a bearish view in the medium term for the meme token dogwifhat (WIF), he anticipates a strong upward movement for the altcoin.

Bluntz pointed out that WIF is displaying several bullish signals, indicating a potential relief rally before resuming its downtrend.

“Despite my belief that WIF appears overvalued in the long run and may reach $1, I also foresee a 50% increase initially,” Bluntz mentioned. “We can observe five downward waves from the $4 peak, along with positive divergences on the four-hour, eight-hour, and 12-hour charts. I expect a corrective ABC wave up to approximately $3-3.4 to attract more investors. In my opinion, shorting at these levels would not be wise.”

Bluntz uses the Elliott Wave theory, a technical analysis method that aims to forecast future price movements based on crowd psychology displayed in waves. As per the theory, a bearish asset typically experiences a five-wave decline followed by a three-wave corrective upward movement.

Analyzing his charts, Bluntz predicts that WIF has completed its five-wave downward cycle and is now ready for an ABC corrective bounce. However, he foresees WIF dropping to around $1 after the bounce.

At the time of writing, WIF is trading at $2.57.

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