Bluntz, a popular cryptocurrency analyst and trader, recently took to the social media platform X to warn his followers about an impending significant drop in the value of the Solana (SOL)-based memecoin dogwifhat (WIF). According to Bluntz, WIF could plummet by around 70% from its current price, potentially falling to $1.

Foreseen Major Drop for Dogwifhat’s WIF

Bluntz’s prediction of a major drop for WIF is rooted in the Elliott Wave theory, a technical analysis method that forecasts future price movements by analyzing patterns in crowd behavior. This theory posits that after a five-wave movement, an asset typically undergoes an ABC corrective movement. According to Bluntz, WIF has completed its five-wave ascent and is now in the C wave correction phase, indicating a significant decline is imminent. While the B wave took longer than initially expected, Bluntz maintains that the overall outlook remains unchanged.

At present, WIF is valued at $3.44, marking a remarkable increase of about 3,854% from its January low of $0.087. Despite this substantial rise, Bluntz remains bearish on WIF’s short-term prospects due to the ongoing correction phase.

Bearish Trend Warning for Solana

Following his analysis of WIF, Bluntz also issued a bearish trend warning for Solana, the fourth-largest cryptocurrency by market cap. He observed that Solana's recent notable surge happened in a three-wave formation rather than a robust five-wave movement, suggesting that SOL might already be in a downtrend.

Bluntz’s chart analysis predicts that Solana might see another rise to around $180 before potentially falling below $140. He noted that the bounce from the $118 lows occurred in only three waves, and the recent drop on the four-hour chart happened in five waves, reinforcing the bearish trend. He added that SOL might experience a decline at its current levels before making a C wave around $178-180, which could temporarily boost bullish sentiment before the next drop.

Currently, Solana is trading at $168, reflecting its recent volatility. Bluntz’s analysis underscores the potential risks and corrective phases that both WIF and SOL may face in the short term, advising investors holding these altcoins to exercise caution.

In conclusion, Bluntz’s insights highlight the potential short-term challenges for WIF and SOL, urging investors to be wary of the significant corrections predicted by the Elliott Wave theory. As these altcoins navigate through their respective correction phases, investors should stay informed and consider the potential risks involved.