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.
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