A widely followed analyst and trader is expressing bullish sentiment on an Ethereum (ETH) competitor that has soared by triple digits in half a year. The analyst pseudonymously known as Bluntz tells his 254,100 followers on the social media platform X that Solana (SOL) appears to have completed a short-term bearish phase when paired against the US dollar. Bluntz, who usually applies the Elliott Wave theory in his technical analysis, says that Solana has bottomed out at around $162 and will now go “higher from here” after completing a three-wave bearish pattern. The Elliott Wave theory states that the main trend of the price of an asset moves in a five-wave pattern while a correction occurs in a three-wave pattern. Solana is trading at $175 at time of writing, up by 722% from the low of $21.27 reached in October of 2023. Against Bitcoin (BTC), the pseudonymous analyst says that Solana is exhibiting a bullish divergence on the four-hour chart with the price of Solana/Bitcoin trending downwards while the Relative Strength Index (RSI) readings are trending upwards. The RSI is a momentum oscillator typically used to determine oversold and overbought conditions and its values range from 0 to 100. From Bluntz’s chart, it also appears that Solana/Bitcoin has completed a downward-trending five-wave pattern that was encompassed within the final wave a three-wave bearish pattern. Solana is trading at 0.00243700 BTC ($70,236) at time of writing. Generated Image: DALLE3
Tags: Cryptocurrency