A popular cryptocurrency analyst known in the space for accurately predicting the cryptocurrency market bottom during the 2018 bear market has recently revealed he believes the price of smart contract platform Solana ($SOL) will go “higher” from its current level.
In a post shared on the microblogging platform X (formerly known as Twitter) with their over 250,000 followers, pseudonymous analyst Bluntz Capital followed up on a previous post predicting the price of SOL would drop to the $160 mark “before we can think about the next leg up.”
The smart contract platform’s native currency SOL saw its price drop to the $162 mark over the week but has since recovered to $167.8 at the time of writing.
In a post on the microblogging platform, Bluntz capital noted that he believes the $162 mark was the bottom for SOL and expects it keep on rising from its current level.
A prominent cryptocurrency analyst known as Bluntz is expressing strong optimism for Solana (SOL), a competitor to Ethereum (ETH). Solana has seen its price skyrocket by over 700% in the past six months, and Bluntz believes the trend is poised to continue.
Bluntz utilizes the Elliott Wave Theory, a technical analysis framework that suggests an asset’s price movement unfolds in a specific, five-wave pattern. Elliott Wave Theory, a popular form of technical analysis, 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.
The price of Solana has surged by more than 660% over the past six months and is up over 65% so far this year. To the analyst, there’s also a bullish divergence on the four-hour chart for the Solana/Bitcoin pair, indicating that while the price of Solana relative to Bitcoin is trending downward, the Relative Strength Index (RSI) – a technical indicator measuring market momentum – is trending upward.
This suggests potential for an impending price reversal for Solana against Bitcoin, meaning the smart contract platform could soon start again outperforming the flagship cryptocurrency.
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.
