In recent developments within the cryptocurrency landscape, expert Bluntz has drawn attention to signs of recovery for Solana, a notable competitor of Ethereum, following a significant decline in its value. He highlighted that a positive divergence in Solana’s daily chart suggests a resurgence in buying momentum, despite the asset having dropped 64% in value during this downturn. This trend has sparked interest among market participants who are keenly observing the evolving situation.
What Are the Indicators of Recovery?
Bluntz pointed out the detection of a positive divergence formation on Solana’s daily chart, indicating a potential rise in buying activity. This technical signal suggests that despite a decrease in price, there is still a willingness among traders to invest in the asset.
Notably, this recovery signal surfaced ahead of tariff news, with SOL Coin experiencing a 13% increase from its recent lows, thereby crossing the $120 mark.
Can Solana Surpass Bitcoin in Market Recovery?
The expert speculated that Solana could outperform Bitcoin during market bounce-backs. His analysis of weekly charts revealed that the SOL/BTC pair had wrapped up its ABC correction, hinting at an approach towards local low levels that could favor Solana.
Bluntz stated, “I commenced a buying process today for names showing recovery signals. The positive divergence is apparent in SOL, HYPE, and similar assets. While I don’t consider this a definitive bottom, I anticipate notable recoveries.”
Using Elliott Wave theory, Bluntz suggested the potential for a five-wave upward movement following the completed ABC correction. His analysis has already yielded profits from his investments, reinforcing the validity of his pre-recovery forecasts.
At the time of analysis, the SOL/BTC pair was approximately 0.00139 BTC, equating to around $105, supporting Bluntz’s graphical interpretations and market evaluations.
- Bluntz identifies a positive divergence formation indicating potential buying momentum in Solana.
- The SOL/BTC pair has completed an ABC correction, suggesting a favorable position for Solana’s future performance.
- A five-wave upward movement may follow, based on Elliott Wave theory.
This analytical approach provides valuable insights into market trends, with the technical indicators observed potentially guiding traders in identifying promising buying opportunities. Nevertheless, thorough research remains essential for navigating the complexities of the cryptocurrency market.
