The crypto analyst who correctly called Bitcoin’s (BTC) 2018 bear market bottom says that Solana (SOL) could be setting up for a significant retracement.
Pseudonymous analyst Smart Contracter tells his 217,900 Twitter followers that Solana’s strong start to the year has likely reached its conclusion.
“Over 112% move from the lows on SOL in a clear V reversal, five-wave impulsive move. One of the clearest I can see across the board, actually.
Over the coming weeks, I’d anticipate an ABC correcting that whole run, probably between 25%-35%, but it will likely be a dip to buy.”
Smart Contracter uses 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 tends to correct (ABC wave) after going through a five-wave rally.
Looking at Smart Contracter’s chart, he appears to be predicting a move below $12 for SOL at the 0.618 Fibonacci level.
Closely followed economist Alex Krüger also thinks that SOL’s epic price increases over the last few weeks have likely come to an end. According to Krüger, the shorts that have fueled SOL’s rally have already been obliterated.
“Bears wiped out. SOL funding markets back in balance. Think still has room to go, but the outperformance phase is mostly behind.”
At time of writing, Solana is changing hands for $16.31, an over 1% increase on the day.
Generated Image: Midjourney
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