‘Sizeable Bounces’ Coming for Ethereum Rival Solana As SOL Flashes Bullish Reversal Signal, According to Analyst

An analyst who accurately called the start of Solana’s ( SOL ) correction this year is flipping bullish on the native asset of the layer-1 protocol.

Pseudonymous analyst Bluntz tells his 317,700 followers on the social media platform X that he believes the Ethereum ( ETH ) challenger looks ripe for a significant bounce after losing about 64% of its value from its all-time high of $293, which it hit in January of this year.

According to Bluntz, SOL is flashing a bullish divergence on the daily chart, a reversal signal suggesting that buying momentum is on the up and up even though an asset’s price continues to fall or move sideways.

“Started bidding some names for bounces today, a lot of bull divs printed on names like SOL, HYPE + many more that have basically gone down -70%+ in a straight line even on large caps.

Definitely do not subscribe to the idea that this is ‘THE BOTTOM’, but sizable bounces are highly likely in my opinion.”

Source: Bluntz/X

Bluntz also thinks that Solana will outperform Bitcoin ( BTC ) when the market catches a bid. According to the trader, the Solana versus Bitcoin (SOL/BTC) chart appears to have completed an ABC correction on the weekly chart, suggesting that the pair may have printed a local bottom.

“SOL/BTC doesn’t look horrid anymore, in my opinion. Finally, at a buyable zone.”

Source: Bluntz/X

Bluntz uses the Elliott Wave theory in their analysis, which states that an asset tends to witness a five-wave rally after completing an ABC correction.

At time of writing, SOL/BTC is valued at 0.00139 BTC, worth $105.

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