Recent developments in the cryptocurrency market indicate possible recovery for Solana despite a major decline in its price.
Indicators of Recovery
Expert Bluntz identified signs of recovery on Solana's daily chart, noting a positive divergence. This technical signal suggests a resurgence in buying momentum, even as the price dropped by 64%. Market participants are showing interest in this dynamic, heightened by expectations of tariff news as SOL Coin has already increased by 13% from recent lows.
Solana's Potential Compared to Bitcoin
Bluntz speculated that Solana could outperform Bitcoin during market recoveries. His analysis of weekly charts revealed the completion of an ABC correction for the SOL/BTC pair, hinting at favorable conditions for Solana's growth. At the time of analysis, the SOL/BTC pair was approximately 0.00139 BTC, equating to around $105.
Analysis and Predictions
Using Elliott Wave theory, Bluntz suggested that a five-wave upward movement could follow the completed ABC correction. His analysis has already generated profits from his investments, reinforcing his pre-recovery forecasts. He stated, “I commenced a buying process today for names showing recovery signals. The positive divergence is apparent in SOL, HYPE, and similar assets. While I don’t consider this a definitive bottom, I anticipate notable recoveries.”
In summary, the technical indicators observed may assist traders in identifying favorable investment opportunities. However, thorough research remains essential for successful navigation in the complex cryptocurrency environment.
