An influential analyst is leaning towards a bullish outlook on a memecoin within the Solana (SOL) ecosystem despite a significant drop that has seen the cryptocurrency lose 72% of its value from its all-time high.
The analyst, known as Bluntz, shared with his 314,000 followers on X that dogwifhat (WIF) may have reached a bottom after completing a correction in a three-wave pattern on the weekly timeframe.
Bluntz, who frequently utilizes the Elliott Wave theory in his technical analysis, mentioned that while WIF’s bearish trend lasted longer than expected, there are promising signs on the memecoin’s lower timeframes. The Elliott Wave theory suggests that asset prices move in a five-wave pattern for the main trend and a three-wave pattern for corrections.
Although it’s early to confirm a bull run, Bluntz expressed, “Obviously very early days and we haven’t seen a five-wave rise from the lows ‘yet’ but I think there’s a decent chance one has begun to form.”
WIF is currently trading at $1.32.
Next up is Bitcoin (BTC). According to Bluntz, Bitcoin might be forming a “brutal” swing failure pattern to the downside on the two-week chart. A swing failure pattern is a tool used in technical analysis to identify potential trend reversal points.
“Bitcoin has five days to not be a brutal two-week SFP,” Bluntz added.
Bitcoin is currently trading at $101,912.
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