A top trader has issued a warning about a popular Solana (SOL)-based Dogecoin (DOGE) rival, saying that the memecoin has more downside potential.
In a video posted to the social media platform X, the pseudonymous analyst known as Bluntz tells his 263,200 followers that technical metrics indicate the meme token dogwifhat (WIF) could endure more corrective moves in the next three to four weeks.
According to the analyst, WIF witnessed a 109-day uptrend earlier this year, leading him to anticipate a similar number of bearish days for the memecoin.
“We are [85] days into the pullback… In terms of time, a 1:1 extension… that takes us out to July.”
Source: Bluntz/X
As for his downside target price for WIF, the analyst says he will be interested in loading up on WIF when traders capitulate as the memecoin drops to around $1 in price.
“So what I anticipate 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 practices the Elliott Wave theory, a technical analysis approach that attempts to predict future price action by following crowd psychology that tends to manifest in waves. According to the theory, a bullish asset will often witness a five-wave upside followed by a three-wave ABC corrective period.
Looking at the trader’s chart, he seems to suggest that WIF has already completed a five-wave rally and is now at the tail end of an ABC correction.
At time of writing, WIF is worth $1.85.
Generated Image: Midjourney