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A top analyst warned against Memecoin, which has grown more than 3,800% since last year. Dogwifhat may crash.
A widely followed cryptocurrency analyst and trader is warning that Solana-based memecoin (SOL) looks poised for a major collapse, Cryptocurrency reports.
The analyst, who goes by the nickname Bluntz, tells his 260,700 followers on social media platform X that DogWifHat ( WIF ) could lose about 70% of its value from current levels.
The crypto strategist says that WIF is correcting wave C, which could push the altcoin below $1.
Blantz uses Elliott wave theory in this regard. A technical analysis approach that attempts to predict future price action by following the collective psychology seen in patterns. According to this theory, an asset following a five-wave wave will witness an ABC corrective move.
The analyst shares a chart showing that WIF has already completed a five-wave rally. And now it may fall for the last stage.
“Little WIF update…. “The plan hasn’t changed…. [Wave] B lasted longer than originally thought.”
WIF is trading at $3.44 at the time of writing, up about 3,854% from its January low of $0.087.
According to Solana, the fourth-largest crypto asset by market capitalization looks bearish. According to Bluntz, Solana’s big jump last month occurred in a three-wave pattern instead of a five-wave one. Which shows that SOL is currently in a downtrend.
The analyst shares a chart that suggests SOL may see another bounce near $180 before falling below $140.
It doesn’t look good, not only was the bounce off the $118 low in only three waves, but now the decline in four hours is in five waves.
I suspect we’re off the hook here. “Then we’ll do wave C to around $178-180, which is enough to surprise everyone again.”
Solana is trading at $168 at the time of publishing.
