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- Renowned altcoin trader Bluntz, despite his medium-term bearish outlook on WIF, anticipates a substantial short-term rally.
- He highlights multiple bullish indicators and expects an ABC upward correction, predicting a 50% bounce to around $3-$3.4 before WIF resumes its downtrend.
A trader renowned for making timely altcoin predictions believes one memecoin is set for a significant surge. Pseudonymous analyst Bluntz, sharing insights with his 261,500 followers on social media platform X, stated that despite being medium-term bearish on meme token Dogwifhat (WIF), he anticipates a substantial bounce.
Bluntz noted that WIF is displaying multiple bullish indicators, suggesting a potential relief rally before resuming its downtrend. Analyst Bluntz noted:
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 employs the Elliott Wave theory, a technical analysis method that aims to forecast future price movements by analyzing crowd psychology, which typically appears in wave patterns. The theory suggests that a bearish asset usually experiences a five-wave decline followed by a three-wave ABC upward correction.
According to Bluntz’s chart, he anticipates that WIF has finished its five-wave decline and is now set to initiate an ABC bounce. However, after this bounce, Bluntz expects WIF to drop to approximately $1. As of press time, the Dogwifhat (WIF) price is trading at $2.02.
Dogecoin Bulls See Strong Liquidations
Bullish bets on dogecoin (DOGE) futures significantly underperformed compared to bitcoin (BTC) on Monday, as a sharp decline in the meme token led to $60 million in long positions being liquidated. DOGE’s price plummeted over 10% before a brief recovery during Asian trading hours amid a broader sell-off in major cryptocurrencies, including Bitcoin.
The meme coin market has seen a general downturn this month as Bitcoin faces downward pressure. The anticipation of a Federal Reserve rate cut has driven investors toward less risky assets, potentially impacting DOGE as one of the largest meme coins in the market, as reported by Crypto News Flash.
According to Coinanlyze data, nearly all DOGE liquidation activity in the past 24 hours was from long positions, with only about $600,000 worth of shorts being liquidated. These figures represent the highest DOGE futures liquidations since May 2021, with over $44 million of the liquidations occurring on Huobi, a crypto exchange favored by traders in Asia.
Open interest, representing the number of unsettled futures contracts, has decreased by 16% to $600 million. Additionally, the long-short ratio for DOGE futures stands at 0.94, reflecting a bearish sentiment among traders who are positioning for further declines.
