Crypto Analyst Predicts Solana Price Crash Using Elliott Waves


In
a
technical
analysis,
renowned
crypto
analyst
Gert
van
Lagen
presented
an
extremely
bearish
outlook
for
Solana
(SOL),
suggesting
that
its
price
is
poised
for
a
substantial
downside
move.
Van
Lagen’s
analysis
is
underpinned
by
the
widely
acclaimed
Elliott
Wave
Theory,
a
methodology
that
seeks
to
identify
recurring
patterns
and
cycles
in
market
price
movements.

Why
The
Solana
Price
Could
Crash

At
the
core
of
Van
Lagen’s

analysis
lies
a
dissection
of
Solana’s
price
action
over
the
past
few
years.
According
to
his
assessment,
the
year
2021
marked
the
culmination
of
a
clean
Elliott
Wave
trend
for
Solana,
signaling
the
end
of
a

How To Get Free Crypto  

bullish
cycle.
This
uptrend
is
characterized
by
a
specific
pattern
of
five
waves,
with
the
final
wave
acting
as
the
climactic
move
before
a
reversal.

Solana
price
analysis
using
Elliott
Wave
Theory
|
Source:
X
@GertvanLagen

Moving
into
2022,
Van
Lagen’s
analysis
identifies
the
unfolding
of
the
A-wave
down,
which
he
classifies
as
the
first
leg
of
a
prolonged
bear
market.
Crucially,
this
A-wave
down
exhibits
a
distinct
pattern
of
five
subwaves,
aligning
with
the
principles
of
the
Elliott
Wave
Theory.
The
presence
of
these
subwaves
is
a
key
indicator
that
the
downtrend
is
likely
to
persist,
as
they
are
believed
to
reflect
the
underlying

market
sentiment
and
psychology.


Related
Reading

In
2023,
Van
Lagen
observed
the
formation
of
the
B-wave,
a
corrective
rally
within
the
broader
bear
market
context.
Just
like
the
A-wave,
this
B-wave
is
composed
of
five
subwaves,
adhering
to
the
Elliott
Wave
Pattern
for
corrective
movements.
The
identification
of
this
B-wave
is
crucial,
as
it
suggests
that
the
overall

downtrend
has
not
yet
been
fully
exhausted
and
that
further
downside
momentum
may
be
forthcoming.

As
the
analysis
shifts
to
2024,
Van
Lagen’s
expectation
is
for
the
C-wave
to
materialize.
In
the
Elliott
Wave
Framework,
the
C-wave
is
the
final
leg
of
the
broader
bear
market
cycle,
and
its
occurrence
would
potentially
mark
the
completion
of
the
ongoing
downtrend
for
Solana.

Coinbase Banner  

Notably,
Van
Lagen’s
analysis
also
highlights
the
presence
of
bearish
divergence
on
the
weekly
Relative
Strength
Index
(RSI),
a
widely
used
momentum
oscillator.
Bearish
divergence
occurs
when
the
price
makes
higher
highs
while
the
RSI
fails
to
confirm
these
highs,
potentially
signaling
a
forthcoming
trend
reversal
or
a
loss
of
bullish
momentum.


Related
Reading

Van
Lagen
posted
via
X:
“I’m
short
on
SOL
–>
ready
for
the
next
leg
down.
2021:
Finalized
a
clean
Elliottwave
up;
2022:
A-wave
down
of
prolonged
bear
market
<- 5 subwaves; 2023: B-wave of prolonged bear market <- 3 subwaves; 2024: Expectation is C-wave down. Bearish divergence on the weekly RSI.”

Notably,
the
analyst
refrains
from
specifying
an
exact
price
target.
However,
the
blue
arrow
on
the
chart
suggests
that
van
Lagen
anticipates
the
SOL
price
could
plummet
to
approximately
$13.
Such
a
decline
would
represent
a
dramatic
price
crash
of
more
than
90%
from
the
current
price
level.

A
50%
Chance
That
This
Will
Happen

In
his
commentary,
Van
Lagen
acknowledged
the
risks
associated
with
his
short
position
on
Solana,
characterizing
it
as
a
“50/50
trade”
and
“ballsy.”
However,
he
defended
his
decision
by
stating
that
it
is
backed
by
a
“good
theoretical
framework”
and
serves
as
a
hedge
against
his
long
positions
in
other
assets.
The
analyst
emphasized
the
importance
of
analyzing
the
isolated
chart
without
emotion,
underscoring
the
need
for
objectivity
in
technical
analysis.

FreeBitcoin Banner  

“Short
on
SOL
is
a
50/50
trade,
ballsy,
but
also
a
hedge
against
my

long
positions.
There’s
good
reason
to
do
so
when
looking
at
the
isolated
chart
without
emotion.
It’s
a
risky
trade
and
I’m
aware
of
it.
But
also
backed
by
a
good
theoretical
framework,”
he

stated.

While
Van
Lagen’s
analysis
presents
a
bearish
outlook
for
Solana
based
on
the
Elliott
Wave
Theory,
it
is
crucial
to
recognize
that
the
broader
crypto
market
often
moves
in
tandem
with
Bitcoin.
This
correlation
raises
questions
among
other
market
participants.
One
user
encapsulated
this
sentiment
by
commenting,
“This
is
really
strange.
You
think
BTC
will
move
up
in
the
coming
weeks
but
SOL
will
move
down?
We
are
still
in
a
market
structure
where
big
coins
don’t
move
down
that
much
while
Bitcoin
is
moving
up.”

At
press
time,
SOL
traded
at
$165.

SOL
price
needs
a
weekly
close
above
the
0.618
Fib,
1-week
chart
|
Source:

SOLUSD
on
TradingView.com

Featured
image
created
with
DALL·E,
chart
from
TradingView.com

Go to Source
Author: Jake Simmons


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