A closely followed crypto strategist who has been bullish on Solana (SOL) for the past year is suddenly turning bearish on its Ethereum (ETH) rival.
In a new video, pseudonymous analyst Bluntz tells his 259,600 followers on social media platform X that Solana appears to have completed a five-wave rally.
Bluntz practices Elliott Wave theory, a technical analysis approach that attempts to predict future price action by following the psychology of the crowd that often manifests itself in waves. According to theory, an asset that has completed a five-wave upward move is likely to experience a correction period.
According to the analyst, SOL has shown bearish patterns since rallying to its recent high of around $210 in March.
“We’re seeing a nice five-wave uptick here on SOL from the bear market lows. Not only do we see a five-wave move up, but from this fifth wave height ($210) we can also see a five-wave move down, and now a three-wave move up… And now we’ve started moving down again.
This has not increased in five waves. It has decreased in five waves. Things are starting to get tough here so I think there’s a very good chance that this will end up being a macro lower high ($188) for SOL/USD and that will probably reverse and eventually settle and disappear these levels down here .”
Looking at the trader’s chart, he seems to predict that the SOL could drop all the way to $80. At the time of writing, SOL is trading at $165.
Don’t miss a beat – Subscribe to receive email alerts straight to your inbox
Check price action
follow us on X, Facebook And Telegram
Surf to the Daily Hodl mix
Generated image: Midjourney