Solana (SOL) is primed for a major price breakout. This is according to Bluntz, a prominent analyst known for accurately calling the crypto market bottom during the 2018 bear market. With SOL’s seven-day gains at 13.8%, there are plenty of reasons to be bullish on the Ethereum rival in the short term now that the menacing network congestion seems to be over.
SOL’s Technical Setup Points To Breakout
The pseudonymous trader, known to his 257.1K followers on the X microblogging platform as Bluntz, noted that Solana is eyeing a price breakout.
Bluntz observed that the price of SOL is printing a bullish pattern on the four-hour chart by making higher lows.
“SOL gearing up for a violent breakout here, in my opinion,” he wrote.
The analyst also utilizes a century-old technical analysis principle called the Elliott Wave Theory. The theory divides a price cycle into two groups — one consisting of a five-wave advance and the other having three corrective waves. Examining his chart, Bluntz implies Solana completed the corrective phase after slumping to the $120 mark a week ago.
It’s worth mentioning that in June 2018, Bluntz predicted that the bear market that saw Bitcoin plummet from the then-all-time high near $20,000 would end with the benchmark crypto trading at $3,200. The forecast came to pass as BTC slumped to this level in December of the same year.
Solana Network Stability As Catalyst For Parabolic Rally
Solana has attracted criticism in recent years for incessant network outages, with the blockchain going down for brief periods of time. After weeks of failed transactions amid a memecoin frenzy on the network, Solana finally turned the corner recently with the rollout of initial fixes for the congestion issues. A recent update shows that the Solana block production rate has returned to normal, with an average block time of two seconds.
Data from SolanaFloor shows that a total of 409 out of 409 transactions were processed on the Solana chain, signalling robust health for the Solana network. This positive network development could be a harbinger of a massive surge in the demand for Solana.
With the blockchain’s health improved SOL bulls might now be ready to display a show worth watching.
SOL was priced at $150.38 as of publication time, down 5% in the last 24 hours, according to CoinGecko data. The token is roughly 28% up from its local low of $120.
