A widely followed crypto analyst says that smart contract platform Solana (SOL) has more room to run even after recording triple-digit gains so far this year.
When paired against Bitcoin, Bluntz says that Solana has formed a bullish setup. The strategist, who applies the Elliott Wave theory in his technical analysis, says that the Solana/Bitcoin pair (SOL/BTC) has completed a bearish five-subwave pattern and is on the cusp of a move that could result in a gain of over 41%.
According to the Elliott Wave theory, subwaves can be used to identify potential turning points in the market. A three-wave pattern is labeled as A, B and C while a five-wave pattern is labeled as 1,2,3,4 and 5.
“I think Solana is about to rip again.
Most important chart I’ve been tracking is SOL/BTC and looks like a nice clean A-B-C done with five subwaves within the C. SOL/USD pair is about to rip another 40% or so again in the coming days in my opinion.”
Solana is trading at $63.59, a 536% gain from its price of $9.99 recorded at the start of the year, while SOL/BTC is trading for $0.00142.
“BTC [is] well and truly going parabolic now. Has all the characteristics of a wave-3 underway.”
Furthermore, the trader notes that the top crypto asset by market cap appears narrative proof on the macroeconomic scale.
“Best part about BTC is it has a bullish narrative for literally whatever happens macro-wise. Rate cuts in ‘24? No worries, BTC pumps because it’s a risk-on asset. More rate rises in ‘24? No worries, BTC pumps because [it’s] deflationary, ultra sound money, flight to quality, digital gold, blah blah blah.”
Bitcoin is trading at $43,930 at time of writing, a fractional gain during the last 24 hours.
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