A top cryptocurrency strategist that has gained a large following on social media after accurately calling Bitcoin’s 2018 bear market bottom above $3,000 has predicted the native token of liquid staking protocol Lido (LDO) could surge in the near future.
In a post shared with his over 220,000 followers on the microblogging platform X (formerly known as Twitter), cryptocurrency analyst Bluntz said that the price of LDO is ready to surge after a retest of its current trend saying it formed a “nice three-wave move from the highs.”
The analyst uses Elliott Wave Theory, a popular tool for forecasting future market movements based on the idea of “recurring, fractal wave patterns.” These patterns reflect the psychology of the masses and consist of five waves that follow the main market trend, which can be either up or down, and three waves that correct it.
Ralph Nelson Elliott developed the Elliott Wave theory in the 1920s after he noticed these patterns. According to the theory, these patterns repeat themselves and enable the prediction of asset prices. The theory became famous when Elliott himself forecasted the stock market bottom in 1935 after a correction that lasted 13 months.
Bluntz notably started suggesting the price of LDO could surge against other digital assets earlier this month, when he found that the native token of the liquid staking service seemed to have bottomed out against BTC.
The cryptocurrency analyst has earlier expressed optimis the wider cryptocurrency market could keep rising in the near future, following a decline in the US dollar index (DXY), which gauges the USD’s value against a basket of foreign currencies. A weaker dollar often indicates strength in risk assets like Bitcoin.
Notably, the co-founder of brokerage firm DeCarley Trading, Carley Garner, has also suggested that the U.S. dollar losing momentum could be a positive for gold, suggesting the precious metal could move to new highs.
Featured image via Unsplash.
