A well-known trader is cautioning investors about a memecoin that has surged over 69,000% in less than four months. The trader, who goes by the name Bluntz, is raising concerns about dogwifhat (WIF), a memecoin based on Solana (SOL).

Bluntz, who shares his insights with over 253,400 followers on the social media platform X, believes that WIF might be headed for a correction. Using the Elliott Wave theory in his analysis, he suggests that WIF has completed a five-wave rally and could now be entering an ABC corrective wave.

The Elliott Wave theory suggests that after a bullish asset completes a five-wave upward move, it often experiences an ABC correction. Bluntz explains, "I think the macro 5 [wave] up from inception on WIF might be done here, all waves accounted for and a long drawn out ABC probably underway before the next parabolic leg."

According to Bluntz's analysis, WIF could drop to $1, representing a 69% decrease from its current price. This projection aligns with the 0.786 Fibonacci retracement level, a tool used in technical analysis to identify potential support and resistance levels. Currently, WIF is trading at $3.32, a staggering increase from its opening price of $0.00478 on December 15th.

Bluntz also shares his outlook on Solana, stating that a corrective three-wave pattern is unfolding. He predicts a possible 7% decline for Solana, with a potential drop to $160 before the next upward movement. As of now, Solana is trading at $172.

In conclusion, Bluntz's warning highlights the potential for a correction in the memecoin WIF, based on technical analysis using the Elliott Wave theory and Fibonacci retracement levels. Additionally, his forecast for Solana suggests a short-term decline before a potential rebound. Investors should consider these insights when making decisions in the volatile cryptocurrency market.