A crypto analyst who accurately called Bitcoin’s (BTC) price bottom during the 2018 bear market is suddenly turning bearish on Solana (SOL).
Pseudonymous analyst Bluntz tells his 239,000 followers on social media platform
According to Bluntz, Solana could lose more than 10% of its value from current levels before reaching a bottom and restarting its uptrend.
“[Five-wave] visible daily for SOL and a bearish SFP (swing failure pattern).
The HTF (high time frame) structure still looks great, but don’t be surprised if we pull back to the high $80s.”
Bluntz practices Elliott Wave theory, a technical analysis approach that attempts to predict future price action by following the psychology of the crowd that often manifests itself in waves. According to the theory, a bullish asset goes through a five-wave period before entering a three-wave correction period.
Looking at the trader’s chart, he seems to suggest that SOL has had a five-wave rally and is now in the middle of a three-wave pullback.
Bluntz also notes that yesterday’s daily candle resembles a swing-fail pattern, as SOL bulls tried to push prices higher but were canceled out by selling pressure.
At the time of writing, SOL is worth $100, down more than 6% from yesterday’s high of $106.14.
The crypto strategist also looks at the price action of Solana competitor Sei (SEI). According to Bluntz, SEI has completed an ABC correction on the four-hour chart and is now gearing up for a big increase.
“SEI has been vertically accumulating for a week.
Send it expedited to $1.”
At the time of writing, SEI is trading at $0.692.
Finally, Bluntz predicts rallies for the meme asset dogwifhat (WIF). The analyst thinks WIF is done consolidating and ready for big upside bursts.
“Imagine thinking the WIF trade is over and not thinking it’s going up and to the right.”
At the time of writing, WIF is trading at $0.282, suggesting an upside potential of almost 400% if the memecoin hits the analyst’s target of $1.40.
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Generated image: Midjourney
