A crypto analyst who accurately called Bitcoin’s (BTC) price floor during the 2018 bear market is suddenly flipping bearish on Solana (SOL).
Pseudonymous analyst Bluntz tells his 239,000 followers on the social media platform X that Solana is flashing multiple bearish signals on the daily chart after rallying to a seven-day high of around $106.
According to Bluntz, Solana may lose more than 10% of its value from current levels before carving a bottom and restarting its uptrend.
“[Five-wave] up visible on daily for SOL and a bearish SFP (swing failure pattern).
HTF (high time frame) structure still looks great but don’t be surprised if we pull back here back into the high $80s.”
Bluntz practices the Elliott Wave theory, a technical analysis approach that attempts to predict future price action by following crowd psychology that tends to manifest in waves. According to the theory, a bullish asset goes through a five-wave surge before entering a three-wave corrective period.
Looking at the trader’s chart, he seems to suggest that SOL has completed a five-wave rally and is now in the process of a three-wave pullback.
Bluntz also notes that yesterday’s daily candle looks like a swing failure pattern, when SOL bulls tried to push prices higher but were negated by selling pressure.
At time of writing, SOL is worth $100, down more than 6% from yesterday’s high of $106.14.
The crypto strategist is also looking at the price action of Solana competitor Sei (SEI). According to Bluntz, SEI has completed an ABC correction on the four-hour chart and is now gearing up for a big surge.
“SEI has been vertically accumulating for a week.
Send it to $1 post haste.”
At time of writing, SEI is trading for $0.692.
Lastly, Bluntz is predicting rallies for the meme asset dogwifhat (WIF). The analyst thinks that WIF is done consolidating and is ready for big bursts to the upside.
“Imagine thinking the WIF trade is over and not thinking it goes up and to the right.”
At time of writing, WIF is trading for $0.282, suggesting an upside potential of nearly 400% if the memecoin hits the analyst’s target of $1.40.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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Source: https://dailyhodl.com/2024/01/31/top-analyst-warns-solana-flashing-bearish-signals-updates-forecast-on-sei-and-one-dogecoin-rival/