A trader who nailed the floor price of Bitcoin (BTC) during the 2018 bull market believes Solana (SOL) and Polygon (MATIC) are about to witness bursts to the upside.
Pseudonymous analyst Bluntz tells his 229,100 followers on the social media platform X that Solana looks ready to rally after pulling back to last week’s low of $54.78.
According to the trader, last week’s correction set the stage for Solana to print a new 2023 high.
“SOL looking like a series of 1-2s from the lows on low time frames. The next leg up should hopefully take us up to $80 and beyond.”
Bluntz practices Elliott Wave theory, an advanced technical analysis method that attempts to predict future price action by following crowd psychology which tends to manifest in waves. According to the theory, a bullish asset goes through a five-wave rally with each major wave consisting of its own five sub-waves.
Looking at the trader’s chart, he seems to predict that SOL will initially rally to about $70 and then $82.50. At time of writing, SOL is trading for $59.66.
Next up is MATIC, the native asset of the Ethereum (ETH) scaling solution Polygon. According to Bluntz, MATIC looks bullish after respecting a key support level while printing a bullish divergence on the hourly timeframe.
A bullish divergence is traditionally seen as a reversal signal as it suggests that bulls are gaining momentum even though the asset’s price is making new lows.
Says Bluntz,
“MATIC gearing up for a potential 20% push into new highs in my opinion.
Top chart is the low time frame. The bottom is daily. Had a nice 0.38 Fibonacci retest. Looks like a three-wave move down and got some nice [bullish] divergence at the lows.”
Looking at the trader’s chart, he seems to predict that MATIC will rally to $1. At time of writing, MATIC is worth $0.844.
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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.
Featured Image: Shutterstock/Quardia