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Legendary trader John Bollinger, who is primarily known for developing the widely used "Bollinger Bands" indicator, claims that Ethereum (ETH) and Solana (SOL) are both forming potential W bottoms. "Gonna be time to pay attention soon, I think," the prominent chartist said in his social media post.
Much-coveted pattern
The "W" bottom typically indicates a trend reversal after a substantial downtrend.
It is formed with two lows that remind of the bottom points of the "W" letter and a peak that is reminiscent of the middle point of the aforementioned letter.
It is worth noting that the second low typically has substantially higher trading volume, which signals that there is robust interest from buyers.
In early April, for instance, Bollinger stated that a classic W bottom was forming on the Bitcoin chart. The cryptocurrency then rallied by more than 50%.
That said, Bollinger's most recent Bitcoin post was rather disappointing for bulls, given that he specifically stated that there was no potential W bottom this time around.
Is bottom near?
Both Ethereum (ETH) and Solana (SOL) suffered significant losses earlier this month during the all-out crypto market crash that was triggered by a substantial escalation in trade tensions between the U.S. and China.
Most recently, crypto also got hit by worries about the health of regional banks after Western Alliance and Zions Bancorp disclosed bad loans.
The flagship altcoin is currently down 21.3% from the record peak of $4,946 that was achieved two months ago.
In the meantime, SOL has plunged by 37% from the all-time high of $293.3 that was logged all the way back in January.
That said, if Bollinger's assessment is correct, both tokens could be primed for further upside.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team