A well-known cryptocurrency analyst and trader is cautioning investors about the potential downfall of a memecoin based on Solana called dogwifhat (WIF). The analyst, who goes by the pseudonym Bluntz, has a significant following of 260,700 on social media platform X. He predicts that WIF could experience a significant drop of up to 70% from its current price levels. Bluntz follows the Elliott Wave theory, a technical analysis method that tracks market psychology in wave patterns to forecast future price movements. According to this theory, assets typically undergo an ABC corrective phase after a five-wave surge. Bluntz shares a chart indicating that WIF has already completed its five-wave rally and is poised for a final decline. WIF is currently trading at $3.44, a substantial increase of 3,854% from its low in January.
Moving on to Solana, Bluntz believes that this fourth-largest cryptocurrency by market cap is showing bearish signs. He argues that Solana’s recent rebound followed a three-wave pattern instead of the expected five-wave surge, suggesting that it is already in a downtrend. Bluntz shares a chart indicating that Solana may experience one more rebound close to $180 before dropping below $140. He expresses concern about the decline in five waves on the four-hour chart, further reinforcing his bearish outlook. Solana is currently trading at $168.
It’s important to note that the opinions expressed by Bluntz and The Daily Hodl are not investment advice, and investors should conduct their own research before making high-risk investments in cryptocurrencies. As with any investment, there are risks involved, and investors should be aware of potential losses. The Daily Hodl does not endorse the buying or selling of cryptocurrencies and is not an investment advisor.