A prominent cryptocurrency analyst has recently expressed his optimism for Ethereum competitor Solana ($SOL), saying that the “floodgates open soon” for the cryptocurrency as it “looks like it’s been vertically accumulating” since it hit a low on January 23.
According to pseudonymous cryptocurrency analyst Bluntz Capital, the price of Solana has been in an accumulation phase after it dipped below the $80 mark back in late January, even though the cryptocurrency’s price has kept on rising since to now trade at $171, being up nearly 70% year-to-date.
Bluntz, shared his bullish thoughts on the microblogging platform X (formerly known as Twitter), and is well-known for using Elliott Wave Theory, a popular form of technical analysis that postulates that market trends unfold in repetitive cycles driven by investor psychology.
These cycles typically consist of a five-wave progression in the direction of the prevailing trend, followed by a three-wave corrective phase.
Ralph Nelson Elliott developed the Elliott Wave theory in the 1920s after he observed and identified “recurring, fractal wave patterns.” These fractal wave patterns are based on the psychology of the masses.
As reported, cryptocurrency investment products saw record weekly inflows of $2.7 billion over the past week, with Bitcoin ($BTC) and Solana ($SOL) investment products seeing more inflows than others, while Ethereum ($ETH) products saw outflows of $2.1 million.
Bitcoin-focused investment products saw inflows of $2.63 billion over the past week, while Solana-focused investment products saw $23.6 million of inflows, towering above products offering exposure to other altcoins.
The Solana network, which saw more inflows than other altcoins last week, has recently seen its price hit a 22-month high amid a wider cryptocurrency market rally. Over the past year, the cryptocurrency’s price surged by an impressive 480%.
Earlier this year, Solana experienced a significant outage, going offline for approximately five hours before validators managed to restart the cluster and resume block production. This was the network’s first major outage of the year, with the last one occurring in February 2023.
Solana’s price has been surging as it recovers from the collapse of the FTX exchange, which, before collapsing, was a heavy supporter of the network’s ecosystem and invested in a number of tokens on the network, including SOL.
The collapse affected Solana by association, but the network has been steadily recovering.
It’s worth noting Bluntz is famous for, in June 2018, predicting the bear market that was seeing the price of bitcoin drop from a then all-time high near $20,000 would end with the coin trading at $3,200. The prediction was nearly accurate, as BTC hit the target in December of that year.
Featured image via Unsplash.
