Since altcoin markets are full of rapid changes and fluctuations, investors and analysts are constantly analyzing market trends and asset prices. In this context, Bluntz’s analysis of Solana (SOL), a well-known analyst in the industry, attracted attention.
According to Bluntz, it is predicted that Solana may experience a significant rise in the near future. Bluntz’s to the analysis Although Solana appears to have experienced a recent decline against the dollar, it may have completed this bearish phase in the short term. In his technical analysis based on the Elliot Wave theory, Bluntz suggests that Solana completed a three-wave bearish formation by making a bottom near $162. This indicates that the altcoin price may be currently in an upward trend.
Elliot Wave theory is a technical analysis tool that predicts future price movements by manifesting in waves and following crowd psychology. According to the theory in question, an asset moves in a five-wave pattern in its main trend, while correction occurs in a three-wave pattern.
Solana’s price is trading at $175, an increase of 722% from the low seen in October 2023. This strengthens the possibility of Bluntz’s prediction coming true.
Another point that draws attention in Bluntz’s analysis is Solana’s performance against Bitcoin. It is stated that while Solana shows an upward trend on the four-hour charts, the Solana/Bitcoin price is in a downward trend. However, Relative Strength Index (RSI) readings are observed to be in an upward trend. This observation from Bluntz suggests that the Solana/Bitcoin chart may have completed a bearish five-wave pattern that included a three-wave downtrend in the last wave.
The RSI is a momentum indicator typically used to identify oversold and overbought conditions, and its values range from 0 to 100.
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