A prominent cryptocurrency analyst has suggested that Solana (SOL), a major competitor to the leading smart contract platform Ethereum (ETH), may be preparing for another explosive upward movement. The seasoned crypto analyst, Bluntz, indicated on social media that Solana appears to be in the midst of an ABC correction pattern, which is often observed in the Elliott Wave theory used in his technical analysis.
The Elliott Wave theory posits that crowd psychology, which tends to manifest in waves, can be used to forecast future price movements. According to the theory, a token in an uptrend typically experiences an ABC correction wave before igniting the next rally. Bluntz expressed excitement about the prospect of Solana’s resurgence, anticipating tweets protected by hindsight when SOL potentially returns to the $140 mark.
At the time of writing, Solana was trading at $104.42 after starting the year below $10. Despite a recent pullback from its local high of around $124, Bluntz maintained an optimistic outlook for Solana’s price, predicting that it would eventually reach new local peaks, even as it temporarily dipped below $100.
Bluntz also commented on a minor 12% correction in SOL, which he views as part of a larger bullish trend against BTC and USD. He expects this trend to continue with more legs upward in the coming months. Additionally, the analyst pointed to the potential rise of ETH layer-2 scaling solution Arbitrum (ARB) following its own ABC correction wave.
Arbitrum, which had experienced a 10.5% decrease over the last 24 hours, was trading at $1.44 at the time of the report. Bluntz remarked that Arbitrum looked fantastic and that many charts were showing a similar pattern of bouncing back from recent lows.