A widely followed analyst is leaning bullish on a memecoin in the Solana (SOL) ecosystem amid a rout that has seen the crypto asset lose 72% of its value from the all-time high.
The analyst pseudonymously known as Bluntz tells his 314,000 followers on the social media platform X that dogwifhat (WIF) might have bottomed out after completing a correction in a three-wave pattern on the weekly time frame.
The analyst who regularly applies the Elliott Wave theory in his technical analysis says that while WIF’s bearish trend lasted longer than he had originally anticipated, there are “some nice signs of life forming” on the memecoin’s low time-frames. The Elliott Wave theory states that the main trend of the price of an asset moves in a five-wave pattern while a correction occurs in a three-wave pattern.
While cautioning that it’s too early to conclude that a bull run is underway, Bluntz says,
“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 trading at $1.32 at time of writing.
Next up is Bitcoin (BTC). According to the widely followed analyst, Bitcoin could potentially be forming a “brutal” swing failure pattern (SFP) to the downside on the two-week chart. A swing failure pattern is a tool in technical analysis that is used to determine potential points of a trend reversal.
“Bitcoin has five days to not be a brutal two-week SFP.”
Bitcoin is trading at $101,912 at time of writing.
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