A well-known trader who has a reputation for accurately predicting altcoin movements believes that a certain memecoin is on the verge of a significant increase in value.

Using the pseudonym Bluntz, this analyst shares with his 261,500 followers on the social media platform X that while he has a bearish outlook in the medium term for the meme token dogwifhat (WIF), he anticipates a strong rebound for this altcoin.

Bluntz points out that WIF is showing several bullish indicators that suggest it may experience a temporary surge before resuming its downward trend.

“Although I foresee WIF reaching $1 in the long run, I also see the potential for a 50% increase in the near future. We have observed five downward waves from the $4 peak and noticeable bullish divergences on the four-hour, eight-hour, and 12-hour charts. I expect an ABC corrective wave upwards to reach approximately $3-3.4 to lure investors back in. In my opinion, shorting at these levels would not be wise.”

Bluntz follows the Elliott Wave theory, a technical analysis method that aims to forecast future price movements by analyzing crowd behavior that typically follows wave patterns. According to this theory, a bearish asset often experiences a five-wave downward movement followed by a three-wave corrective bounce known as an ABC correction.

Based on Bluntz’s analysis, it appears that WIF has completed its five-wave downward movement and is now primed for an ABC bounce.

However, Bluntz predicts that after the bounce, WIF will drop to approximately $1.

At the time of writing, WIF is being traded at $2.57.

To stay updated on the latest news and analysis, subscribe to receive email alerts directly to your inbox and follow us on X, Facebook, and Telegram. Explore The Daily Hodl Mix for more content.

Please note that the opinions expressed in The Daily Hodl do not constitute investment advice. Investors are advised to conduct thorough research before engaging in high-risk investments in Bitcoin, cryptocurrency, or digital assets. It is important to understand that all transfers and trades are done at your own risk, and any losses incurred are your responsibility. The Daily Hodl does not endorse the buying or selling of any cryptocurrencies or digital assets, nor does it serve as an investment advisor. Kindly be aware that The Daily Hodl engages in affiliate marketing activities.

Image Source: Midjourney