A well-known trader has issued a cautionary statement regarding a popular Dogecoin (DOGE) competitor based on the Solana (SOL) blockchain, suggesting that the meme coin may experience further declines.
In a video shared on the social media platform X, the analyst known as Bluntz, with a following of 263,200, informs his audience that technical indicators point to potential corrective movements for the meme token dogwifhat (WIF) over the next three to four weeks.
The analyst highlights that WIF had a 109-day uptrend earlier in the year, leading him to anticipate a corresponding period of bearish movement for the memecoin.
“We are currently [85] days into the pullback… Based on timing, a 1:1 extension would project this trend until July.”
Regarding his target price for WIF, the analyst mentions that he will consider accumulating WIF when traders start to panic, potentially around the $1 mark.
“I expect further downward movement. I believe the 0.78 Fibonacci retracement level will be tested… Ultimately, this could present a great long-term entry point for WIF.”
Bluntz applies the Elliott Wave theory, a technical analysis method that aims to forecast future price movements by analyzing crowd behavior in waves. As per the theory, a bullish asset typically experiences a five-wave uptrend followed by a three-wave corrective phase.
From the trader’s chart, it appears that WIF has 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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Image Credit: Midjourney
