Renowned Analyst Anticipates Significant Decline for Solana, Echoes High Probability of SOL Exhibiting Macro Lower High
Prominent crypto strategist Bluntz, recognized for his previously optimistic stance on Solana (SOL) over the past year, has surprisingly adopted a bearish perspective on the Ethereum (ETH) competitor.
In a recent video shared with his substantial following of 259,600 users on the social media platform X, Bluntz reveals his observation that Solana seems to have concluded a five-wave rally.
Bluntz employs the well-known Elliott Wave theory, a technical analysis methodology that seeks to predict future price movements by analyzing patterns influenced by crowd psychology, usually portrayed in the form of waves. According to this theory, an asset that has completed an upward move in five waves is likely to experience a corrective phase.
As per the analyst, SOL has been exhibiting bearish patterns ever since catapulting to its most recent high of approximately $210 in March.
“We have noticed a significant five-wave surge here on SOL from the lows of the bear market. Not only have we observed this five-wave upward movement, but subsequent to this fifth-wave peak ($210), we have also witnessed a five-wave decline, followed by a three-wave recovery… And now we are beginning to decline again.
“It is worth noting that this asset has not experienced a rise in five waves. Conversely, it has endured a decline in five waves. Currently, it seems to be struggling, which leads me to strongly believe that this will likely be classified as a macro lower high ($188) for SOL/USD. Consequently, it is probable that the price will fluctuate and eventually drop, breaching these levels at the bottom.”
Based on the trader’s chart, it appears that Bluntz anticipates SOL potentially plunging to as low as $80. At the time of writing, SOL is currently valued at $165.
Source: Bluntz/X