Famed for accurately predicting the bottom of Bitcoin's 2018 bear market, the renowned cryptocurrency analyst known as Smart Contracter has now turned their attention to Solana, forecasting a massive surge of over 100% for the Ethereum rival.
The analyst, who boasts over 220,000 followers on Twitter, expressed a bullish outlook for the smart contract platform. Smart Contracter’s recent SOL price prediction is grounded on the completion of a significant three-wave correction pattern as per the Elliott Wave Theory, alongside a bounce from a significant support level.
Developed in the 1920s by Ralph Nelson Elliott, the Elliott Wave Theory observes and identifies "recurring, fractal wave patterns." These patterns are based on the psychology of the masses and are generally interpreted based on five waves moving in the direction of the primary market trend, either bullish or bearish, followed by three corrective waves. The theory suggests that the repetition of these patterns allows for the prediction of asset price movements. Elliott's theory gained prominence when he predicted the stock market bottom in 1935 after a 13-month correction.
Solana, however, has had its fair share of challenges. Most notably, it has been affected by the collapse of FTX, a major supporter of the cryptocurrency. Moreover, in the wake of the U.S. Securities and Exchange Commission’s lawsuits against Binance and Coinbase, Solana was deemed an unregistered security by the regulator. This led commission-free trading platform Robinhood and digital assets trading platform Bakkt to announce plans to delist Solana.
Despite these setbacks, Smart Contracter's predictions for Solana have been positive, adding to his recent bullish outlook for Bitcoin. The analyst noted a "beautiful downtrend/bullflag breakout" on Bitcoin's daily chart, suggesting it might be time to "start taking some risk again."
Smart Contracter gained fame in June 2018 for predicting the bear market that saw Bitcoin's price drop from a then all-time high near $20,000 to end with the coin trading at $3,200. This prediction proved almost spot-on, with Bitcoin hitting the target in December of that year.
With an impressive track record and a knack for market insights, Smart Contracter's optimistic prediction for Solana could signal the dawn of a bull run for this smart contract platform, albeit the regulatory challenges it faces. As always, investors are encouraged to do their due diligence and make informed investment decisions.