Analyst Predicts Bullish Reversal for Solana (SOL) Following Correction
An analyst known as Bluntz, who accurately predicted the start of Solana’s correction earlier this year, is now turning bullish on the native asset of the layer-1 protocol.
Bullish Divergence Signals Potential Reversal
Bluntz, who has a following of 317,700 on X, believes that Solana, a competitor to Ethereum, is showing signs of a bullish divergence on the daily chart. This indicates a potential reversal in buying momentum despite the asset’s recent price decline of 64% from its all-time high of $293 in January.
In a recent tweet, Bluntz stated, “Started bidding some names for bounces today, a lot of bull divs printed on names like SOL, HYPE + many more that have basically gone down -70%+ in a straight line even on large caps. Definitely do not subscribe to the idea that this is ‘THE BOTTOM’, but sizable bounces are highly likely in my opinion.”
Solana Poised to Outperform Bitcoin
Bluntz also predicts that Solana will outperform Bitcoin once the market gains momentum. The SOL/BTC chart shows signs of completing an ABC correction on the weekly chart, suggesting a potential local bottom.
Bluntz stated, “SOL/BTC doesn’t look horrid anymore, in my opinion. Finally, at a buyable zone.”
Using Elliott Wave Theory for Analysis
Bluntz utilizes the Elliott Wave theory in their analysis, which suggests that an asset typically experiences a five-wave rally following an ABC correction. At the time of writing, SOL/BTC is valued at 0.00139 BTC, equivalent to $105.
For more updates and insights, follow us on X, Facebook, and Telegram.
Don’t miss out on the latest news – subscribe to get email alerts delivered directly to your inbox. Stay informed about price action and explore The Daily Hodl Mix for more updates.
Generated Image: Midjourney