An analyst who accurately called the start of Solana’s (SOL) correction this year is flipping bullish on the native asset of the layer-1 protocol.
Pseudonymous analyst Bluntz tells his 317,700 followers on the social media platform X that he believes the Ethereum (ETH) challenger looks ripe for a significant bounce after losing about 64% of its value from its all-time high of $293, which it hit in January of this year.
According to Bluntz, SOL is flashing a bullish divergence on the daily chart, a reversal signal suggesting that buying momentum is on the up and up even though an asset’s price continues to fall or move sideways.
“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.”
Bluntz also thinks that Solana will outperform Bitcoin (BTC) when the market catches a bid. According to the trader, the Solana versus Bitcoin (SOL/BTC) chart appears to have completed an ABC correction on the weekly chart, suggesting that the pair may have printed a local bottom.
“SOL/BTC doesn’t look horrid anymore, in my opinion. Finally, at a buyable zone.”
Bluntz uses the Elliott Wave theory in their analysis, which states that an asset tends to witness a five-wave rally after completing an ABC correction.
At time of writing, SOL/BTC is valued at 0.00139 BTC, worth $105.
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Generated Image: Midjourney
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