A well-known crypto strategist, who has been bullish on Solana (SOL) for the past year, has suddenly changed his stance and is now bearish on the Ethereum (ETH) rival.
In an engaging video, the pseudonymous analyst Bluntz informs his 259,600 followers on the social media platform X that Solana seems to have completed a five-wave rally.
Bluntz is a follower of the Elliott Wave theory, a technical analysis method that aims to predict future price movements by observing crowd psychology, which often manifests in waves. According to this theory, an asset that has completed a five-wave upward movement is likely to experience a corrective phase.
According to the analyst, SOL has been displaying bearish patterns ever since reaching its recent high of around $210 in March.
“We can observe a clear five-wave rise on SOL from the lows of the bear market. Not only do we see this five-wave upward movement, but from the high of the fifth wave ($210), we can also see a five-wave decline, followed by a three-wave upward movement… And now it’s starting to decline again.
This asset has not risen in five waves, but rather declined in five waves. It’s currently struggling, so I believe that there’s a very high probability that this will turn out to be a macro lower high ($188) for SOL/USD, and it will likely move sideways and eventually drop, surpassing these lower levels.”
Based on the trader’s chart, it appears that he predicts SOL could drop all the way down to $80. As of now, SOL is trading at $165.
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