A widely followed cryptocurrency trader is warning that one low-cap memecoin built on the Solana (SOL) blockchain may abruptly witness a bearish reversal.
Pseudonymous trader Bluntz tells his 286,900 followers on the social media platform X that the hippopotamus-themed memecoin Moo Deng (MOODENG) looks to be in the midst of an ABC corrective move after briefly shattering the $0.30 level.
Bluntz practices the Elliott Wave theory, which states that a bullish asset tends to witness rallies after completing an ABC move down. According to the analyst, MOODENG moved too high too fast it needs a significant correction before the next leg up.
“Could be wishful thinking but I’d love to see a pullback here on Moo Deng into white box to add. Starting to get a wee bit too parabolic for my liking.”
Moo Deng hit a high of $0.335 on November 8th, up more than 2,000% from $0.0154 on September 20th.
Next up, the analyst believes that memecoin Pepe (PEPE) may outperform the Solana-based memecoin dogwifhat (PEPE/WIF) after printing an ABC correction on the daily timeframe.
“Am a huge WIF enjoyer but PEPE/WIF is giving me massive outperformance vibes. Always trying to be in the fastest horses and PEPE is looking pretty fast right now against multiple cross pairs.”
