A widely followed cryptocurrency analyst and trader is warning that a Solana (SOL)-based memecoin looks primed 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 its value from current levels.
The crypto strategist says that WIF is in the midst of a C-wave correction that could send the altcoin to as low as $1.
Bluntz practices the Elliott Wave theory, a technical analysis approach that attempts to predict future price action by following crowd psychology that tends to manifest in waves. According to the theory, an asset tends to witness an ABC corrective move following a five-wave surge.
The analyst shares a chart suggesting WIF has already completed a five-wave rally and may be due for a final leg down.
“Little WIF update…. the plan hasn’t changed….. [Wave] B just took longer than initially thought.”
WIF is trading at $3.44 at time of writing, up by around 3,854% from the January low of $0.087.
Turning to Solana, the analyst says that the fourth-largest crypto asset by market cap looks bearish. According to Bluntz, Solana’s big bounce last month occurred in a three-wave pattern instead of a five-wave surge, indicating that SOL is already in a downtrend.
The analyst shares a chart suggesting that SOL may see one more bounce close to $180 before falling below $140.
“Not looking good bruv, not only was the bounce from the $118 lows only in three waves but now the decline on the four hour is in five waves too.
I suspect we chop here and then do a C wave up to around $178-$180 which should be just enough to get everyone all bulled up again.”
Solana is trading at $168 at time of writing.
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