Solana Approaches a Key Demand Zone – Could This Signal a Bottom?

As Solana dips into a significant demand area between $118 and $138, buyers need to demonstrate their presence. Initial reactions are starting to surface, but the momentum remains sluggish, raising an essential question: Is SOL poised for another downside move, or is a surprise bottom forming?

Key Takeaways:

Solana has entered a critical support zone between $118 and $138.
Initial reactions within this zone lack strong buying momentum.
A bullish scenario might establish if the B-wave correction concludes here.
However, a deeper correction might still be possible before a confirmed trend reversal.
Continuing to monitor Bitcoin’s movements is crucial, as Solana's price appears to follow its patterns closely.

Solana

Solana Entering a Vital Support Area

In a recent update posted on X, crypto analyst More Crypto Online highlighted that Solana (SOL) has recently descended into a crucial support zone. This important area ranges from $118 to approximately $138. The analyst stresses that this zone is critical for the market to show strong demand to prevent a further decline in structure.

Observing shorter timeframes, the analyst has noted early signs of reactions developing within this broad support band. Yet, they caution that these reactions currently lack strong conviction and do not exhibit the necessary sustained buying power to indicate a lasting reversal.

Solana
SOL’s price within a critical zone | Source: Chart from More Crypto Online on X

More Crypto Online presents a more optimistic scenario, referred to as the "white scenario," in which the larger B-wave correction could conclude within this current support area. If confirmed, this would establish a definitive low, allowing Solana to potentially challenge its previous cycle highs by initiating a strong C-wave rally.

However, the main hurdle preventing a definitive bullish outlook is that the recovery from the recent swing low has not demonstrated the characteristics of an impulsive upward movement. As long as this remains true, the analyst believes that a deeper correction is the more plausible scenario, urging traders to prepare for a potential test of levels below the existing support range.

The price movements of Solana continue to mirror the broader patterns observed in Bitcoin. The ongoing decline can still be interpreted as an A–B–C corrective pattern within the orange scenario, where the final C wave unfolds as a five-legged movement. If this analysis holds, the last leg of the correction may still extend further, potentially reaching the $81 to $90 range.

More Crypto Online also noted that the current upward movement resembles an internal wave 4 rally. Under this interpretation, the market might see one more low, completing the final stage of the corrective wave before a more reliable reversal pattern begins to take shape.

Solana is currently at a critical decision-making phase; however, the Elliott Wave framework suggests that bearish pressure might not yet be fully resolved. Until there is a clear confirmation of a shift with impulsive upward movement, the chart allows for the possibility of another downward push before a sustainable trend reversal can occur.

Solana
SOL trading at $131 on the 1D chart | Source: SOLUSDT on Tradingview.com