A broadly adopted dealer is expressing bearish sentiment on a months-old memecoin constructed on Solana (SOL).
The dealer pseudonymously generally known as Bluntz tells his 253,400 followers on the social media platform X that dogwifhat (WIF) could also be due for a correction.
Based on the pseudonymous dealer who applies the Elliott Wave principle in his technical evaluation, WIF seems to have accomplished a five-wave rally and now seems to be primed to enter an ABC corrective wave.
The Elliott Wave principle states {that a} bullish asset tends to witness an ABC correction after finishing a five-wave upside transfer.
Says Bluntz,
“I feel the macro 5 [wave] up from inception on WIF could be executed right here, all waves accounted for and a protracted drawn out ABC in all probability underway earlier than the following parabolic leg.”
Primarily based on Bluntz’s charts, it seems that the analyst is forecasting WIF to fall to $1, about 69% beneath the present worth, which additionally coincides with the 0.786 Fibonacci retracement stage. In technical evaluation, Fibonacci retracement ranges are used to establish potential assist and resistance areas.
WIF is buying and selling at $3.32 at time of writing, up by round 69,356% from the December fifteenth opening worth of $0.00478.
Bluntz additionally gives his forecast on Solana. Based on the broadly adopted dealer, a correctional three-wave sample is underway for Solana that might end result within the fifth-largest crypto asset by market cap falling by round 7% from the present stage.
“A sweep of $160 appears prone to me earlier than we will take into consideration the following leg up on SOL for my part.”
Solana is buying and selling at $172 at time of writing.
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