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.
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.
Generated Image: Midjourney