An analyst known for making timely crypto calls believes one Ethereum (ETH) rival is flashing bullish signals.
Pseudonymous analyst Bluntz tells his 339,000 followers on X that Solana (SOL) may be setting the stage for a breakout after posting a bullish divergence on the four hour chart.
A bullish divergence occurs when the price of an asset is forming lower lows while an oscillator like the relative strength index (RSI) is forming higher highs.
“Both sides of the range swept on SOL, range break to the downside already reclaimed. We have a four-hour bull div (divergence) that can translate into a daily bull div and also a three-day bull div later on and the whole crypto TL (timeline) is in despair.
The hilarious part about it all is ppl (people) always go into full blown panic mode on the pullback after we already bottomed, but rarely panic in the actual capitulation which happened a bit over two weeks ago.”
The analyst also says that Solana’s recent price action indicates investors are using the correction to the $70 and $80 range as opportunities to stack more SOL.
“Still believe SOL bottom is in here and this current PA (price action) is early stages of accumulation.”
Looking at his four hour chart, Bluntz suggests that Solana is likely completing a three-wave correction and could soon return to the $110 level.
Bluntz practices the Elliott Wave theory, which states that a bullish asset tends to witness a five-wave rally after going through an ABC correction.
SOL is trading for $84 at time of writing, down 4.5% on the day.
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Generated Image: Midjourney