A renowned cryptocurrency analyst and trader, Bluntz, has issued a warning concerning a potential decline in the value of the Solana (SOL)-based memecoin, Dogwifhat (WIF). According to Bluntz, WIF might drop by approximately 70%, reaching a value of $1 from its current levels.
What Signals a Major Drop for Dogwifhat’s WIF?
Bluntz’s prediction is anchored in the Elliott Wave theory, a technical analysis method that forecasts future price movements through crowd psychology reflected in wave patterns. This theory suggests that after a five-wave motion, an asset typically undergoes an ABC corrective phase.
The analysis indicates that WIF has concluded its five-wave rise and is currently amid a C wave correction, pointing to a potential significant decline. Despite a prolonged B wave, the overall correction plan remains intact according to Bluntz.
Presently, WIF is trading at $3.44, marking a 3,854% increase from its January low of $0.087. However, despite this rise, Bluntz remains pessimistic about WIF’s short-term outlook due to the continuing correction.
What Bearish Signals Are There for Solana?
Bluntz also addressed Solana (SOL), the fourth-largest cryptocurrency by market capitalization, warning of a potential bearish trend. He noted that Solana’s recent surge took a three-wave form rather than a robust five-wave movement, indicating SOL could already be in a downtrend.
According to Bluntz’s chart analysis, Solana could briefly rise to $180 before falling below $140. The bounce from $118 lows occurred in three waves, and the recent decline on the four-hour chart happened in five waves, supporting the bearish trend. He suggested that SOL might decline at current levels before a temporary boost to around $178-180, followed by another drop.
Investor Takeaways
Investors should consider the following:
- WIF might experience a 70% decline based on Elliott Wave theory.
- The current rise to $3.44 for WIF might be temporary.
- Solana may see a short-term surge to $180 before a significant drop below $140.
- Solana’s recent three-wave rise may indicate an ongoing downtrend.
Investors holding these altcoins should exercise caution and stay informed about potential risks and corrective phases.
In conclusion, Bluntz’s analysis highlights the need for vigilance among investors, emphasizing potential short-term declines in both WIF and SOL. Continuous monitoring of market trends and shifts is crucial in navigating the volatile cryptocurrency landscape.
