Solana Faces 2-Year Bear Market, Strategist Predicts 70% Drop

A prominent crypto strategist has recently shared a three-year price outlook for Solana, predicting a challenging period ahead for the popular layer-1 protocol. The strategist, known by the pseudonym Bluntz, anticipates that Solana will spend the next two years in a deep bear market, with potential counter-trend rallies that could set the stage for even steeper declines.

Bluntz, who accurately predicted Solana’s meltdown earlier this year, utilizes the Elliott Wave theory in his analysis. According to this theory, an asset will undergo an ABC correction after completing a five-wave surge. Bluntz suggests that Solana will conclude its A-wave pullback once it drops below $100. Following this, he predicts a counter-trend B-wave rally that could push Solana to around $200 by early 2026, before a subsequent C-wave correction drives the price down to approximately $80 in 2027. Bluntz expects that Solana will then embark on a new five-wave rally, potentially trading above $300 by 2028.

At the time of writing, Solana was trading at $118.10, reflecting a nearly 7% decline for the day. Bluntz’s analysis indicates that the current market conditions are setting the stage for a prolonged bear market, with the potential for significant price fluctuations in the coming years.

In addition to his outlook on Solana, Bluntz also updated his forecast for the US Dollar Index (DXY), a benchmark that measures the value of the US dollar against a basket of six major currencies. Bluntz predicts that 2025 will be a challenging year for the US dollar, with the DXY potentially experiencing a significant decline. Based on his analysis, Bluntz suggests that the DXY is currently in the midst of a C-wave correction, which could drive the index below 100 points. At the time of writing, the DXY was trading at 103.84 points.

Bluntz’s updated forecast for the US Dollar Index highlights the potential for macroeconomic factors to influence the broader cryptocurrency market. A weakening US dollar could lead to increased demand for alternative assets like Solana, as investors seek to diversify their portfolios and hedge against inflationary pressures and geopolitical uncertainties. However, the strategist’s analysis also underscores the importance of monitoring market dynamics and