A prominent cryptocurrency analyst who gained a large following on social media after accurately calling bitcoin’s 2018 bear market bottom above $3,000, has recently forecasted a surge of over 100% for Ethereum ($ETH) rival Solana ($SOL).
In a tweet shared with their audience of over 220,000 followers on the microblogging platform, analyst Smart Contracter expressed a positive outlook for the smart contract platform, justifying his bullish sentiment on SOL on the basis of a recently completed Elliot Wave Theory three-wave correction pattern and a bounce from a significant support level.
Smart Contracter’s price prediction uses Elliott Wave theory, which according to Investopedia was developed by Ralph Nelson Elliott in the 1920s after he observed and identified “recurring, fractal wave patterns.”
These fractal wave patterns are based on the psychology of the masses. The Elliott Wave theory is usually interpreted based on five waves moving in the direction of a main market trend, which can be bullish or bearish, and by three corrective waves. The repetition of these patterns, theory suggests, allows the movements of asset prices to be predicted.
The theory is said to have gained notoriety when Elliott himself predicted the stock market bottom in 1935 after a 13-month correction. Solana has notably been affected by the collapse of FTX, which was a major supporter of the cryptocurrency, and recently saw a number of platforms plan to delist it over the U.S. Securities and Exchange Commission’s lawsuits against Binance and Coinbase.
Solana was deemed an unregistered security by the regulator in these lawsuits, and as a result commission-free trading platform Robinhood and digital assets trading platform Bakkt have both announced plans to delist Solana.
The popular analyst has also recently indicated a bullish outlook on the flagship cryptocurrency Bitcoin, saying the cryptocurrency has seen as “beautiful downtrend/bullflag breakout” on its daily chart, and it may be time to “start taking some risk again.”
It’s worth noting Smart Contracter is famous for, in June 2018, predicting the bear market that was seeing the price of bitcoin drop from a then all-time high near $20,000 would end with the coin trading at $3,200. The prediction was nearly accurate, as BTC hit the target in December of that year.
Featured image via Unsplash.