In a meticulous technical analysis, notable cryptocurrency analyst Gert van Lagen has articulated an exceptionally bearish projection for Solana (SOL), proposing its value is potentially on the threshold of a major downward shift. The crux of Van Lagen’s analysis rests on the well-respected and often used Elliott Wave Theory, a mechanism designed to highlight repetitive patterns and cycles in market activity.
Digging deep into Solana’s recent price performance, Van Lagen presents a calculated evaluation that reveals 2021 to be the zenith of a crystalline Elliott Wave sequence for Solana, indicating an end to an optimistic cycle. This upward trajectory follows a distinct pattern comprising five waves, with the last acting as the climactic denouement before its expected reversal.
As 2022 unravels, Van Lagen’s examination pinpoints the emergence of what he describes as the A-wave down, which he classifies as the precursor to an enduring bear market. Intriguingly, this A-wave down showcases an unmissable pattern of five subwaves, adhering strictly to the guidelines of the Elliott Wave Theory. This pattern is thought to mirror the market sentiment and psychology, suggesting the downtrend might sustain over time.
Moving onto 2023, Van Lagen identifies the creation of a significant B-wave, acting as a corrective rally within the broader bear market scenario. This B-wave, much like its predecessor A-wave, comprises five subwaves, thus fulfilling the Elliott Wave methods for corrective motion. The spotting of this B-wave is essential as it implies the broader downtrend is yet to peter out, indicating further downward momentum could be on the horizon.
A notable element of Van Lagen’s findings is the sighting of a bearish divergence on the weekly Relative Strength Index (RSI), a momentum oscillator frequently used in market analysis. This divergence transpires when the price reaches higher levels while the RSI negates these highs, often an indicator of a looming trend reversal or a decline in bullish momentum.
Moving into 2024, Van Lagen expects the C-wave to materialize, the final stage of the broader bear market cycle in the Elliott Wave lens. This potentially signifies an end to the persistent downtrend for Solana.
While an exact price target remains unsaid, the projected trajectory suggests Van Lagen anticipates a plummet in the SOL price to around $13. If accurate, this fall would symbolize a dramatic 90% crash from its current standing.
To avail of his insights, Van Lagen defends his contrarian position on Solana by labeling it a “50/50 trade” and “ballsy.” Despite the apparent high stakes, he maintains that his stance is supported by credible theoretical underpinnings and serves as a safeguard against his long positions in assorted assets. The analyst underscores the critical role of interpreting the standalone chart without emotion, reinforcing the necessity for objectivity in technical analysis.
However, cryptomarket dynamics indicate Bitcoin often influences the broader market, prompting queries from other investors. A respondent summarized this by asking, “You think BTC will rise in the coming weeks but SOL will fall? We’re still in a market where big coins don’t fall that much while Bitcoin is rising.”
At this point, SOL is trading at $165. Notwithstanding, only time will tell whether Van Lagen’s harrowing outlook for Solana proves accurate.
