A crypto analyst who accurately predicted the start of Solana’s correction earlier this year is now bullish on the native asset of the layer-1 protocol.
Known as Bluntz, the analyst shared with his 317,700 followers on X that he sees potential for a significant rebound in Solana (SOL) after it dropped by 64% from its all-time high of $293 in January.
Bluntz pointed out a bullish divergence on the daily chart for SOL, indicating a potential reversal in buying momentum even as the price continues to decline or trade sideways.
“I started placing bids on some assets for potential rebounds today, noticing many bullish divergences on names like SOL, HYPE, and others that have experienced significant drops of over 70% even in large caps.
“I don’t believe this is ‘THE BOTTOM,’ but I think substantial rebounds are highly probable.”
Bluntz also expressed optimism that Solana will outperform Bitcoin when the market sees an uptrend. He suggested that the SOL/BTC chart has completed an ABC correction on the weekly timeframe, indicating a possible local bottom.
“SOL/BTC is showing signs of improvement, in my view. It’s finally in a zone where it’s worth considering buying.”
Bluntz relies on Elliott Wave theory in his analysis, which suggests that assets often experience a five-wave rally following an ABC correction.
As of now, SOL/BTC is trading at 0.00139 BTC, equivalent to $105.
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