A prominent trader has issued a cautionary statement regarding a well-known Dogecoin rival based on Solana (SOL), stating that the meme coin has the potential for further decline.

In a video shared on the social media platform X, the trader known as Bluntz, followed by 263,200 users, has indicated that technical indicators suggest that the meme token dogwifhat (WIF) could experience additional downward movements over the next three to four weeks.

The analyst points out that WIF saw a 109-day uptrend earlier this year, leading him to predict a similar number of bearish days for the meme coin.

“We are [85] days into the pullback… Based on time, a 1:1 extension… that takes us out to July.”

Source: Bluntz/X

In terms of his projected lower target price for WIF, the analyst mentions that he plans to consider purchasing WIF when traders give up, as the meme coin falls to approximately $1.

“What I expect to happen is that we have to keep grinding down. I believe the 0.78 [Fibonacci retracement level] is going to be reached… Ultimately, I think that would be an excellent long-term entry point for WIF.”

Bluntz utilizes the Elliott Wave theory, a technical analysis method that aims to forecast future price movements by following crowd psychology, which often materializes in waves. According to the theory, a bullish asset will frequently experience a five-wave increase, followed by a three-wave ABC corrective phase.

Based on the trader’s chart, it appears that WIF has already completed a five-wave rally and is currently in the final stages of an ABC correction.

At the time of writing, WIF is valued at $1.85.

Don’t Miss a Beat –
Subscribe
to receive email alerts directly to your inbox
Check
Price Action
Follow us on
X
,
Facebook
and
Telegram
Surf
The Daily Hodl Mix


Disclaimer: The opinions expressed on The Daily Hodl do not constitute investment advice. Investors should conduct their own research before engaging in any high-risk investments in Bitcoin, cryptocurrency, or digital assets. Please be aware that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl engages in affiliate marketing.