A closely followed crypto strategist who’s been bullish on Solana (SOL) for the past year is suddenly flipping bearish on the Ethereum (ETH) rival.
In a new video, pseudonymous analyst Bluntz tells his 259,600 followers on the social media platform X that Solana appears to have completed a five-wave rally.
Bluntz practices the Elliott Wave theory, a technical analysis approach that attempts to predict future price action by following crowd psychology that tends to manifest in waves. According to the theory, an asset that has completed a five-wave upside move will likely witness a corrective period.
According to the analyst, SOL has been printing bearish patterns ever since rallying to its recent high of about $210 in March.
“We see a nice five-wave rise here on SOL from the bear market lows. Not only do we see that five-up, but from this fifth-wave high ($210) we can also see a five-wave decline, and now a three-wave move-up… And now we’ve started coming off again.
This has not risen in five waves. It’s declined in five waves. It’s starting to struggle here so I do think that there’s a really, really high chance that this is going to end up being a macro lower high ($188) for SOL/USD and that this will probably chop around and ultimately come down and take out these levels down here.”
Looking at the trader’s chart, he seems to predict that SOL may drop all the way down to $80. At time of writing, SOL is trading for $165.
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Generated Image: Midjourney
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