The cryptocurrency market is generally known for its fast-changing nature and high volatility. Therefore, investors and traders often try to understand market movements by resorting to technical analysis tools and strategies. Recently, meme coin projects built on the Solana (SOL) ecosystem have become particularly notable. One of these projects, dogwifhat (WIF), has gained significant momentum in the market. However, there are some concerns about WIF’s future performance, according to analysis by widely followed trader Bluntz.
Bluntz thinks WIF may need a correction and supports his view with Elliott Wave theory. Elliott Wave theory suggests that price movements in financial markets follow a specific pattern. According to this theory, a bullish asset usually experiences a correction following a five-wave upward move. Based on Bluntz’s analysis, it appears that WIF has completed a five-wave rally and is now ready to enter the ABC corrective wave.
Fibonacci retracement levels are also often used to determine support and resistance levels in technical analysis. According to Bluntz’s charts, WIF is predicted to fall approximately 69% below its current price. This level is equivalent to $1 and also corresponds to the 0.786 Fibonacci retracement level. At the time of writing, Meme coin is trading at $3.32, up approximately 69.356% from its opening price of $0.00478 on December 15.
The crypto analyst also gave his prediction about Solana. shared. According to the widely followed trader, a three-wave correction pattern is on the way that could cause the fifth-largest crypto asset by market cap to fall nearly 7% from its current level.
“I think a drop to $160 seems likely to me before considering SOL’s next rally.”
Popular cryptocurrency Solana is trading at $176 at the time of writing this article.
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