A well-known cryptocurrency analyst and trader, Bluntz, has raised concerns about a potential decline in the value of the meme coin Dogwifhat (WIF) which is based on Solana (SOL). Bluntz anticipates a significant drop of around 70% in the price of WIF, projecting it to plummet to $1 from its current levels.

What Indicates a Major Decline for Dogwifhat’s WIF?

Bluntz’s warning is rooted in the Elliott Wave theory, a technical analysis approach that predicts future price movements by analyzing wave patterns influenced by collective psychology. This theory posits that following a five-wave cycle, an asset typically enters a corrective phase denoted by ABC patterns.

The analysis suggests that WIF has completed its five-wave ascent and is presently in a corrective C wave, intimating a potential substantial downturn. Despite a prolonged B wave, the overarching corrective trajectory remains intact as per Bluntz’s assessment.

Currently, WIF is valued at $3.44, showcasing a remarkable 3,854% surge from its low of $0.087 in January. Nonetheless, despite this growth, Bluntz maintains a pessimistic stance on WIF’s immediate prospects due to the ongoing correction.

What Negative Indicators Exist for Solana?

Bluntz also commented on Solana (SOL), the fourth-largest cryptocurrency by market capitalization, cautioning about a possible bearish trend. He observed that Solana’s recent upsurge followed a three-wave pattern rather than a robust five-wave motion, hinting at a potential downtrend.

According to Bluntz’s chart analysis, Solana could spike briefly to $180 before sliding below $140. The rebound from the $118 lows occurred in three waves, and the recent downtrend on the four-hour chart unfolded in five waves, reinforcing the bearish hypothesis. He suggested the likelihood of SOL decreasing from current levels before a temporary climb to approximately $178-180, followed by another descent.

Key Points for Investors

Investors should keep in mind the following:

• WIF might face a 70% decline as per Elliott Wave theory.
• The current upswing to $3.44 for WIF could be transitory.
• Solana may witness a brief upsurge to $180 before a notable drop below $140.
• The recent three-wave advance of Solana might signal an ongoing downtrend.

Investors who have holdings in these alternative coins are advised to proceed with caution and remain attentive to potential risks and corrective phases.

In summary, Bluntz’s analysis underscores the necessity for vigilance among investors, emphasizing potential short-term downturns in both WIF and SOL. Constant monitoring of market trends and shifts is imperative for navigating the volatile cryptocurrency domain.