A widely followed trader is expressing bearish sentiment towards the months-old memecoin built on top of Solana (SOL).
Trader known by the pseudonym Bluntz says 253,400 followers on social media platform X scheduled for correction by dogwifhat (WIF).
According to an anonymous trader who applies Elliott Wave theory to technical analysis, WIF appears to have completed its five-wave rally and is now ready to enter the ABC correction wave.
According to Elliott Wave theory, bullish assets tend to witness ABC corrections after completing a five-wave upward movement.
Blunts says:
“I think macro 5 (wave) from scratch in WIF could be completed here, with all waves accounted for and a long drawdown ABC probably underway before the next parabolic leg.”
According to Bluntz’s chart, analysts are predicting WIF to fall to $1, about 69% below its current price, which is also in line with the 0.786 Fibonacci retracement level. Technical analysis uses Fibonacci retracement levels to identify potential areas of support and resistance.
WIF is trading at $3.32 at the time of this writing, an increase of approximately 69,356% from its opening price of $0.00478 on December 15th.
Bluntz also offers his own predictions for Solana. Depending on the Solana, a widely admired trader, says a corrective three-wave pattern is underway that could see the fifth-largest cryptocurrency asset by market capitalization fall about 7% from current levels.
“I think we’ll sweep $160 before we think about what’s next for SOL.”
Solana is trading at $172 at the time of this writing.
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