A trader known for making timely altcoin calls thinks that one memecoin is gearing up for a big upside burst.
Pseudonymous analyst Bluntz tells his 261,500 followers on the social media platform X that while he’s medium-term bearish on meme token dogwifhat (WIF), he thinks the altcoin is poised for a big bounce.
According to Bluntz, WIF is flashing multiple bullish signals suggesting that it may witness a relief rally before continuing its downtrend.
“Even though I think on high timeframe WIF looks cooked and destined for $1, I also believe a 50% bounce first could be on the cards.
We can see five waves down from the $4 lower high and nice bullish divergences on the four-hour, eight-hour, and 12-hour [charts]. Expecting a countertrend ABC up to around $3-3.4 to rope everyone back in again. Shorting these levels definitely not smart in my opinion.”
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, a bearish asset often witnesses a five-wave move down followed by a three-wave ABC correction upward.
Based on the trader’s chart, he seems to predict that WIF has completed a five-wave move down and now looks poised to ignite an ABC bounce.
But after the bounce, Bluntz sees WIF falling to around $1.
At time of writing, WIF is trading for $2.57.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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