- Cryptocurrency traders are closely monitoring a Solana (SOL)-based memecoin as it shows signs of potential decline.
- An anonymous analyst known as Bluntz expects the token may see further corrective movements in the coming weeks.
- Bluntz highlights that the token’s current pullback phase mirrors a previous 109-day uptrend, suggesting similar bearish duration.
Expert Analyst Predicts Further Decline for Trending Memecoin
Forecoming Correction for SOL-Based Memecoin
An experienced trader, known pseudonymously as Bluntz, has cautioned investors regarding a Solana (SOL)-based memecoin similar to Dogecoin (DOGE). According to Bluntz, technical indicators hint at more downside potential for dogwifhat (WIF), a relatively popular meme token.
Technical Analysis Signals Continued Bearish Trend
In a recent video shared on the social media platform X, Bluntz, who has over 263,000 followers, explained his outlook on WIF. He noted the memecoin experienced a significant uptrend lasting 109 days earlier this year. Therefore, he expects the current bearish phase to last a comparable duration, estimating it will extend for another few weeks.
“We are currently 85 days into the pullback… A 1:1 time extension suggests this cycle could complete around July,” Bluntz explained, basing his analysis on the Elliott Wave theory. This method of technical analysis anticipates market movements based on observed crowd psychology patterns.
Price Targets and Long-Term Entry Points
Bluntz further elaborates on his strategy by highlighting a specific price target for WIF. He anticipates the memecoin’s price could drop as low as $1 before reaching a stable entry point. “I expect we need to continue this downward grind. It looks likely we’ll hit the 0.78 Fibonacci retracement level. For long-term investors, this could be an optimum entry point,” he stated.
The Elliott Wave theory, which Bluntz utilizes, suggests that a bullish trend typically concludes with a five-wave rise, followed by an ABC corrective pattern. Currently, WIF appears to be in the final stages of this correction.
Conclusion
In summary, Bluntz’s analysis indicates that dogwifhat (WIF) token may endure more downward pressure in the coming weeks, potentially providing a favorable long-term entry point at around $1. As the crypto market remains volatile, investors should stay informed and consider technical indicators when making investment decisions.
