A well-known trader is cautioning investors about a popular 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 analyst known as Bluntz, with a following of 263,200, discusses how technical indicators suggest that the meme token dogwifhat (WIF) could experience more downward movement over the next three to four weeks.
According to Bluntz, WIF saw a 109-day upward trend earlier in the year, leading him to predict a similar number of bearish days for the meme coin.
“We are [85] days into the pullback… In terms of time, a 1:1 extension… that takes us out to July.”
As for his target price for WIF, the analyst indicates that he will consider acquiring WIF when traders give up and the memecoin drops to around $1.
“So what I expect 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 utilizes the Elliott Wave theory, a technical analysis method that aims to forecast future price movements by observing crowd psychology that often manifests in waves. According to the theory, a bullish asset typically experiences a five-wave upward movement followed by a three-wave ABC corrective period.
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.
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