Last year, prominent cryptocurrency analyst Bluntz, who previously held a bullish stance on Solana (SOL), has now shifted his outlook, forecasting a potential decline for the Ethereum competitor. Via social media platform X, Bluntz shared his latest analysis, suggesting that SOL has concluded a five-wave rally, which could indicate a forthcoming market trend reversal.
Why is Solana Expected to Decline?
Bluntz employs the Elliott Wave theory, a technical analysis method that anticipates future price trends based on crowd psychology, which tends to oscillate in waves. The theory posits that after a five-wave ascent, an asset typically enters a corrective phase. According to Bluntz, SOL has been on a downward trajectory since hitting a peak of around $210 in March.
The analyst noted that Solana has experienced a substantial five-wave increase from its lowest bear market levels. This was followed by a five-wave decline and a subsequent three-wave upward correction. Bluntz highlights that Solana is now showing signs of another downturn, hinting at its potential inability to sustain upward momentum. He anticipates that Solana could reach a lower macro peak at $188 before falling further.
How Low Could Solana Go?
Bluntz’s analysis indicates that Solana might drop to $80. At the time of his prediction, Solana was trading at $165. The price chart provided by the analyst underscores a bearish outlook, suggesting a continued downward trend.
He pointed out that Solana’s recent price actions do not signify the continuation of the five-wave rise but rather a five-wave downtrend, potentially indicating further declines. Bluntz’s sudden shift from bullish to bearish sentiment carries substantial implications for traders and investors. His application of the Elliott Wave theory offers a structured framework for interpreting Solana’s potential price movements, focusing on crowd psychology and wave patterns to predict possible corrective phases following significant price ascents.
Key Takeaways for Investors
- Bluntz anticipates SOL could fall to $80, from its current $165 level.
- The Elliott Wave theory suggests a corrective phase after a five-wave rise.
- Recent price actions indicate a five-wave downtrend for Solana.
- Investors should consider the potential for further declines in Solana’s price.
In conclusion, Bluntz’s analysis, grounded in the Elliott Wave theory, provides a bearish outlook for Solana. Investors are advised to monitor these trend indicators closely as the cryptocurrency market remains highly volatile.