Bluntz, a prominent figure in the cryptocurrency market, has identified troubling signals in Solana’s two-week chart, reminiscent of the decline seen before 2021. He cautioned about the weakening momentum of the asset despite its recent rise, noting that SOL has dropped from $260 to $8 by the end of 2021. Currently, SOL trades at $196.71, raising alarm among market participants due to its recent 24-hour value loss. Analysts emphasize the need for caution based on historical data.
Analyst’s Warning and Historical Parallel
In a recent social media update, Bluntz explained that Solana’s current chart formation mirrors that of late 2021. The weak bullish signal observed over the two-week period increases the risk of a price reversal. According to Bluntz, if SOL drops below the $220 level, it invalidates this structure, significantly enhancing the likelihood of a downturn.
Market Data and Investor Expectations
As per the latest data, Solana 
$106 is trading at $196.71, having lost nearly 10% in value over the past day. Market observers are debating whether the downward trend will persist. Analysts suggest that, regardless of whether a severe crash like in 2021 occurs, high volatility is likely to remain in the short term.
Investors are exercising caution due to past experiences. Bluntz’s warning has resonated particularly among traders focused on technical analysis. However, some experts argue that macroeconomic conditions differ from those in 2021, suggesting that a similar scenario may not repeat. Consequently, risk management takes precedence in the cryptocurrency market.
