A widely followed cryptocurrency analyst and trader is warning that a Solana (SOL)-based memecoin appears poised for an epic collapse.
The analyst, pseudonymously known as Bluntz tells his 260,700 followers on the social media platform X that dogwifhat (WIF) could lose around 70% of their value from current levels.
The crypto strategist says WIF is in the midst of a C-wave correction that could send the altcoin to a low of $1.
Bluntz practices Elliott Wave theory, a technical analysis approach that attempts to predict future price action by following the psychology of the crowd that often manifests itself in waves. According to the theory, an asset tends to witness an ABC correction after a wave of five waves.
The analyst shares a chart indicating that WIF has already completed a five-wave rally and may be on a final leg.
“Small WIF update…. the plan hasn’t changed… [Wave] B just took longer than initially thought.”
WIF is trading at $3.44 at the time of writing, up about 3.854% from the January low of $0.087.
I turn to Solana, the analyst say that the fourth largest crypto asset by market cap is looking bearish. According to Bluntz, Solana’s big rebound last month occurred in a three-wave pattern instead of a five-wave pattern, indicating that SOL is already in a downtrend.
The analyst shares a chart suggesting that SOL could rise again near $180 before falling below $140.
“Things weren’t looking good, not only was the bounce from the $118 lows only in three waves, but now the four-hour drop is also in five waves.
My guess is we’ll chop here and then do a C wave to about $178-$180, which should be just enough to get everyone excited again.
Solana is trading at $168 at the time of writing.
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