A popular cryptocurrency strategist who accurately predicted the 2018 bear market bottom at around $3,200 months before it occurred, has recently revealed he believes the price of the smart contract platform Solana ($SOL) could surge over 40% to trade above the $140 mark.
In a post shared on the microblogging platform X (formerly known as Twitter) with its over 230,000 followers, analyst Bluntz Capital noted that he believes Solana could be gearing up for a rise as its current downtrend has “been tested too many times now” to be considered bearish.
Per the analyst, he can’t “ignore the clear 3 wave move down from the highs looking corrective” and it appears the last two weeks have been an accumulation phase.
Solana’s price recovered singifcantly from the collapse of cryptocurrency exchange FTX, whose founder Sam Bankman-Fried was a staunch supporter of, leading the token and its ecosystem to be affected by association. Bankman-Fried was recently found guilty on counts of wire fraud and money laundering.
Solana’s ecosystem has been seeing growing adoption, with its Saga smartphone, which once faced sluggish sales, selling out recently over a lucrative 30 million BONK token airdrop for each new owner of the phone.
The smart contract platform’s price moved up over 320% over the past year, and over 30% over the last 30-day period. It lost 4% of its value recently amid a wider crypto market sell-off.
The analyst’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 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. Smart Contracter’s analysis of SOL using it suggests the price of the cryptocurrency has completed a wave-two corrective phase and is now ready for a third wave rally.
It’s worth noting Bluntz Capital 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.