Solana (SOL) has been on a prolonged downward trajectory, forming a well-defined five-wave decline. However, recent price action suggests a potential reversal after testing a crucial support zone.
SOL Price Analysis: Signs of a Rebound?
The 4-hour SOL chart reveals a completed five-wave corrective structure, with the price currently testing a key horizontal support zone at around $128. This downturn followed an ascending channel that peaked at $294 on January 19, marking an all-time high. The bearish trend accelerated after SOL lost the critical $190 support level, triggering further downside pressure.
Key Technical Indicators
- Elliott Wave Completion: SOL’s decline aligns with Elliott Wave principles, nearing the 0.618 Fibonacci retracement level at $118, a historically significant support zone.
- RSI at Oversold Levels: The 4-hour Relative Strength Index (RSI) has dipped into oversold territory, mirroring previous reversal points. If history repeats, this could indicate a bullish reversal is on the horizon.
- Potential Breakout Zone: A sustained hold above $128 and a breakout above $151 (0.5 Fibonacci retracement) could confirm a shift in trend, fueling further upside momentum.
Short-Term SOL Price Prediction
On the 1-hour chart, SOL appears to have completed its fifth wave of decline and is showing early signs of recovery. The price has bounced from the $128 region, attempting to reclaim higher levels.
Key resistance to watch includes:
- $151 (0.5 Fibonacci retracement): Immediate resistance that SOL must breach for further gains.
- $185 (0.382 Fibonacci retracement): A breakout past this level could signal a shift in sentiment, leading to a stronger recovery.
- $227 (0.236 Fibonacci retracement): A significant breakout target that could indicate a bullish resurgence.
Traders should closely monitor whether SOL sustains above $128. A confirmed move above $152 could spark a rally toward $185 and beyond. However, failure to hold support at $118 may invalidate the bullish outlook, leading to a deeper correction.
For investors, SOL’s ability to reclaim key resistance levels will determine whether this marks the start of a new bullish phase or just a temporary relief bounce.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
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