A trader who managed to hit the Bitcoin (BTC) price bottom during the 2018 bull market believes that Solana (SOL) and Polygon (MATIC) are about to witness an upward burst.
Pseudonymous analyst Bluntz tells his 229,100 followers on social media platform X that Solana appears poised to rise after retreating to last week’s low of $54.78.
According to the trader, last week’s correction has paved the way for Solana to post a new record high for 2023.
“SOL looks like a range of 1-2s from the lows on low time frames. The next step up should hopefully take us to $80 and beyond.”
Bluntz practices Elliott Wave theory, an advanced technical analysis method that attempts to predict future price action by monitoring the psychology of the crowd, which often manifests itself in waves. According to the theory, a bullish asset goes through a five-wave rally, with each major wave consisting of its own five sub-waves.
Looking at the trader’s chart, he seems to predict that the SOL will initially rise to around $70 and then to $82.50. At the time of writing, SOL is trading at $59.66.
Next up is MATIC, the native asset of the Ethereum (ETH) scaling solution Polygon. According to Bluntz, MATIC looks bullish after respecting a key support level, while printing a bullish divergence on the hourly time frame.
A bullish divergence is traditionally viewed as a reversal signal because it suggests bulls are gaining strength even as the asset’s price reaches new lows.
Says Bluntz,
“MATIC is gearing up for a potential 20% push to new highs, in my opinion.
The top chart is the low time frame. The bottom is daily. Had a nice Fibonacci retest of 0.38. It looks like there’s been a three-wave move down and it’s produced some nice results [bullish] divergence at the nadir.”
Looking at the trader’s chart he seems to predict that MATIC will rise to $1. At the time of writing, MATIC is worth $0.844.
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Featured image: Shutterstock/Quardia
