Solana (SOL) Eyes Breakout: Is a Price Surge Coming?

(Photo : Canva) Solana

  • Analyst Bluntz predicts a significant price breakout for Solana (SOL), citing bullish technical indicators and a history of accurate predictions, including forecasting Bitcoin's bottom during the 2018 bear market.

  • SOL has gained 13.8% in the last week, and technical analysis suggests the formation of bullish patterns, indicating potential for further price increases. Solana's network congestion issues are also improving, with recent updates leading to faster block times and successful transactions, boosting confidence in the blockchain's stability.

  • Despite a slight decline in price to $150.38, down 5% from the previous day, SOL has seen a significant increase of about 28% from its recent low of $120, suggesting growing optimism among investors.

Solana (SOL) is about to see a significant price breakout. Bluntz, a well-known analyst who was successful in correctly predicting the bottom of the cryptocurrency market during the 2018 bear market, claims this. Considering that SOL has gained 13.8% over the last seven days, there are many reasons to be optimistic about the Ethereum competitor in the near run, especially given that the dangerous network congestion appears to be abating.

Technical Setup Points For A Breakout In SOL

The X microblogging platform's anonymous Bluntz trader, who has 257.1K followers, claimed that Solana is preparing for a price breakthrough.

Bluntz noted that by creating higher lows on the four-hour chart, the price of SOL is printing a bullish pattern. The Elliott Wave Theory, a century-old technical analysis paradigm, is another tool the analyst employs. According to the idea, a price cycle may be divided into two groups: one with a five-wave advance and the other with three corrective waves. Based on his chart, Bluntz suggests that Solana finished the corrective phase a week after falling to $120.

It's important to note that Bluntz forecast in June 2018 that the bear market that caused Bitcoin to crash from its all-time high of almost $20,000 would conclude with the benchmark cryptocurrency selling at $3,200. The prediction came true when Bitcoin fell to this level in December of that year.

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Stability of the Solana Network

In recent years, Solana has come under fire for frequent network disruptions that cause the blockchain to briefly fall offline. With the latest release of preliminary remedies for the congestion issues, Solana finally turned the corner following weeks of unsuccessful transactions during a memecoin frenzy on the network. According to a recent update, the average block time for Solana blocks is two seconds, indicating a restoration to normal block creation pace.

A total of 409 out of 409 transactions were executed on the Solana chain, according to data from SolanaFloor, indicating the network's strong health. This encouraging network expansion may portend a sharp increase in the demand for solana.

The health of the blockchain has improved, thus SOL bulls could be prepared to put on a performance that is worth seeing.

As of the time of publishing, SOL's price was $150.38, down 5% from the previous day, according to CoinGecko statistics. Since the token's local low of $120, it has increased by about 28%.

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