Over the past week, pseudonymous crypto analyst Bluntz has been analyzing the price action of Solana meme token DOG WIF HAT ($WIF), offering a bullish outlook on its future.

On January 4, Bluntz observed what he described as a “nice clean 5 wave rise” in the price of $WIF. This term refers to a pattern in technical analysis, often used in the Elliott Wave Theory, where a price trend is expected to unfold in five distinct waves. Following this rise, he noted a 77% decline in the token’s value, a movement he referred to as an “abc down.” This is another technical analysis term indicating a three-part corrective pattern. Seeing this as an opportune moment, Bluntz mentioned accumulating $WIF, believing it to be an excellent entry point for potential significant gains.

Further, on the same day, he highlighted a “beautiful 5 wave move” from the previous lows and a subsequent abc correction, praising the token’s response to a critical price level of $0.08, which reinforced his positive bias towards $WIF.

On January 8, Bluntz shared that he observed bullish divergences on the 12-hour charts for $WIF. Bullish divergences occur when the price of an asset makes a new low, but a technical indicator used to predict future price movements does not, suggesting a potential reversal in the downward trend of the asset. He also commented on the passionate community around $WIF, noting its extreme market behavior.

By January 10, Bluntz pointed out signs of accumulation in $WIF, a term used to describe a phase where investors are actively buying or ‘accumulating’ an asset, often in anticipation of a future price increase. He encouraged followers to take note of those promoting the token at its current lower prices rather than when it’s significantly higher.

On January 11, Bluntz reported a 165% gain on his $WIF position, expressing confidence that the token could reach at least $1, highlighting the community’s enthusiasm and potential for driving the price up.

In a related development reported by CoinDesk, a significant trade involving $WIF took place, where a buyer spent nearly $9 million on the token in three transactions. This trade was executed in a low-liquidity pool, meaning there wasn’t enough trading volume to absorb the large order without affecting the price. Consequently, the price of $WIF spiked to as high as $3 before crashing down to around 15 cents.

This resulted in a slippage loss of over $5.7 million for the trader. Slippage in trading refers to the difference between the expected price of a trade and the price at which the trade is actually executed. Some market observers have speculated that this trade could have been a marketing stunt to draw attention to $WIF, especially given its recent price decline.

At the time of writing, $WIF, which was launched last month, is trading at around $0.2242, up 63.5% in the past 24-hour period. Its $209.59 million market cap makes it the 263th most valuable cryptoasset.

Source: TradingView

Featured Image via DogWifHat