The crypto analyst who correctly rated the Bitcoin (BTC) bear market bottom in 2018 says that Solana (SOL) could be preparing for a significant pullback.
Pseudonymous Smart Contracter Analyst He says his 217,900 Twitter followers that Solana’s strong start to the year is likely over.
“Over 112% moves from the lows in SOL in a clear V reversal, five wave impulsive move. One of the clearest I can see across the board, actually.
In the next few weeks, I anticipate ABC correcting that whole streak, probably 25-35%, but it will probably be a dip to buy.”
Smart Contracter uses Elliott Wave Theory, a technical analysis approach that attempts to predict future price action by following the 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 the Smart Contracter chart, it seems to be predicting a move below $12 for SOL at the 0.618 Fibonacci level.
Closely watched economist Alex Krüger also believes that SOL’s epic price increases in recent weeks are probably over. According to Krüger, the shorts that have fueled the SOL rally have already been deleted.
“Bears wiped out. SOL funding markets are back in balance. I think he still has some room to go, but the top performance phase is mostly behind him.”
At time of writing, Solana is changing hands for $16.31, up more than 1% on the day.
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