An analyst known for his timely crypto calls believes an Ethereum (ETH) rival is sending bullish signals.
Pseudonymous analyst Bluntz tells His 339,000 followers on
A bullish divergence occurs when the price of an asset forms lower lows while an oscillator such as the relative strength index (RSI) forms higher highs.
“Both sides of the range have been swept on SOL, the range break down has already been reclaimed. We have a four-hour bull div (divergence) that could translate into a daily bull div and later also a three-day bull div and the entire crypto TL (timeline) is in despair.
The hilarious thing about all of this is that people (humans) always go into full panic mode at the pullback after we’ve already hit rock bottom, but rarely panic at the actual capitulation that happened a little over two weeks ago.
The analyst also says that Solana’s recent price action indicates that investors are using the correction to the $70 and $80 range as opportunities to pile more SOL.
“I still believe the SOL bottom is here and this current PA (price action) is an early stage of accumulation.”
Looking at its four-hour chart, Bluntz suggests that Solana is likely completing a three-wave correction and could return to the $110 level soon.
Bluntz applies the Elliott Wave theory, which states that a bullish asset tends to witness a five-wave rally after experiencing an ABC correction.
SOL is trading at $84 at the time of writing, down 4.5% on the day.
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Generated image: Midjourney