A broadly adopted dealer is expressing bearish sentiment on a months-old memecoin constructed on Solana (SOL).
The dealer pseudonymously often called Bluntz tells his 253,400 followers on the social media platform X that dogwifhat (WIF) could also be due for a correction.
In keeping with the pseudonymous dealer who applies the Elliott Wave idea 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 idea 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 an extended 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 value, which additionally coincides with the 0.786 Fibonacci retracement stage. In technical evaluation, Fibonacci retracement ranges are used to establish potential help 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 value of $0.00478.
Bluntz additionally affords his forecast on Solana. According to 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 are able to 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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