Memecoin WIF Shows Signs of Recovery, Trader Bluntz Optimistic

Signs of recovery are beginning to emerge for dogwifhat (WIF), a memecoin built on the Solana (SOL) blockchain, according to a prominent trader. Despite the asset's significant decline from its all-time high, losing 72% of its value, the trader, known as Bluntz, is optimistic about the coin's prospects.

Bluntz, who has over 314,000 followers on the social media platform X, believes that WIF may have reached its bottom after completing a correction in a three-wave pattern on the weekly time frame. The trader, who frequently uses the Elliott Wave theory in his technical analysis, notes that while the bearish trend lasted longer than expected, there are encouraging signs of life on the memecoin's low time-frames.

While cautioning that it's still early to conclude a bull run, Bluntz suggests that there's a decent chance a five-wave rise from the lows has begun to form. At the time of writing, WIF is trading at $1.32.

In other news, Bluntz also discusses Bitcoin (BTC), indicating that the cryptocurrency could potentially be forming a "brutal" swing failure pattern (SFP) to the downside on the two-week chart. A swing failure pattern is a technical analysis tool used to determine potential points of a trend reversal. Bitcoin has five days to avoid this pattern, according to Bluntz. At the time of writing, Bitcoin is trading at $101,912.