A closely followed analyst known as a “Master Trader” on the crypto exchange Bybit is warning that Solana (SOL) has printed a market reversal signal similar to what was witnessed during the 2021 cycle.
Pseudonymous analyst Bluntz tells his 314,900 followers on the social media platform X that Solana is flashing a bearish divergence on the two-week chart.
Traders keep a close watch on bearish divergences, especially on the higher time frame as it suggests that an asset is losing momentum even though its price is rising or going sideways.
Says Bluntz,
“SOL losing $220 is really bad in my opinion.
Invalidates the ABC from the highs and makes it look more impulsive and looks like there’s a two-week bearish divergence printing in 24 hours, and it will need an absolute miracle to save that.
It’s over in my opinion.”
In his latest SOL analysis, Bluntz notes that Solana printed the same bearish divergence signal on the two-week chart in late 2021, just before SOL collapsed from a high of about $260 to a bear market low of $8.
“It printed.
The last time we saw one was, drum roll….. 2021.”
At time of writing, SOL is trading for $196.71, down over 7% in the last 24 hours.
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