Solana's Bluntz Predicts 64% Rebound, Outperformance Over Bitcoin

An analyst who accurately predicted the start of Solana’s (SOL) correction this year has shifted to a bullish stance on the native asset of the layer-1 protocol. The pseudonymous analyst, known as Bluntz, shared his insights with his 317,700 followers on the social media platform X, expressing his belief that Solana is poised for a significant rebound after experiencing a 64% decline from its all-time high of $293, reached in January of this year.

Bluntz's analysis indicates that SOL is exhibiting a bullish divergence on the daily chart. This technical signal suggests that buying momentum is increasing, despite the asset's price continuing to fall or move sideways. The analyst noted that several cryptocurrencies, including SOL and HYPE, have seen substantial declines of over 70% and are now showing signs of potential recovery.

While Bluntz does not subscribe to the idea that the current price point represents the absolute bottom, he believes that sizeable bounces are highly likely. This optimism is based on the technical indicators and the overall market sentiment, which suggest that a reversal is imminent.

In addition to his bullish outlook on SOL, Bluntz also predicts that Solana will outperform Bitcoin (BTC) when the market experiences a broader recovery. According to the trader, the SOL/BTC chart has completed an ABC correction on the weekly chart, indicating that the pair may have reached a local bottom. This analysis is supported by the Elliott Wave theory, which posits that an asset tends to witness a five-wave rally after completing an ABC correction.

At the time of writing, the SOL/BTC pair is valued at 0.00139 BTC, equivalent to $105. Bluntz's insights provide a technical perspective on the potential for Solana to rebound, offering a glimmer of hope for investors who have weathered the recent market downturn. The analyst's use of the Elliott Wave theory adds a layer of technical analysis to his predictions, suggesting that the market may be on the cusp of a significant recovery phase for Solana.