Solana Sets the Stage for a Key Dual-Test – What’s Coming Next?

As Solana (SOL) approaches two crucial decision points, momentum is tightening, making the upcoming days highly influential for its price direction. This article explores Solana's current state, identifying potential corrections and engagement strategies for traders.

Key Takeaways

Current Momentum: SOL is experiencing a decrease in volatility as it nears two important decision points.
Potential Correction: Analysts suggest that SOL could experience a deeper corrective move, possibly reaching as low as $49.26 to $32.03.
Technical Structure: The price is forming a tightening structure, indicating a significant movement is on the horizon.
Support Level: The $133 support level is critical, showing potential for buyer engagement.
Strategy Recommended: Observing market responses at key levels can offer better opportunities than forcing trades.

Solana

Completion of the Upward Wave: Solana’s Indicator for a Larger Pullback

Elliott Waves Academy recently provided an insightful analysis of Solana, particularly focusing on the weekly timeframe. According to their findings, SOL seems to have concluded its upward wave, denoted as wave (1)/(A), within a larger bullish context. The recent plunge below a significant price level bolsters the notion that a deeper corrective phase may be commencing.

Using wave counting and Fibonacci retracement levels, this correction is predicted to extend into the range of $49.26 to $32.03, which corresponds to the 50% to 61.8% retracement area. If SOL enters this zone, a clear corrective pattern paired with a vigorous rebound would reinforce the bullish outlook, suggesting that buyers are returning with stronger confidence. Price movements within this area will be pivotal in determining the next significant swing.

Solana

SOL poised for a pullback before a bounce | Source: Chart from Elliot Waves Academy on X

If this anticipated scenario occurs, a definitive breakout above the previous critical level will signal renewed upward momentum. Conversely, a drop below the $8.00 mark would negate the bullish perspective entirely, indicating a more profound structural shift.

Preparing for Impact: SOL's Price Consolidation

Recent insights from CryptoPulse indicate that Solana is forming what appears to be a classic technical setup. The present structure is tightening, exhibiting lower volatility and hinting that a significant move may be imminent. As SOL consolidates, the chart aligns with an essential technical level.

The focal point of this analysis is the $133 support level, which has historically served as a reliable reaction point for buyers. Tangible partnerships, consistent development, and rising on-chain activity further bolster this technical level, lending it added significance.

Given this convergence, the next steps become clearer: monitor the price as it approaches the $133 range and assess market reactions. If buyers engage actively, with the formation of wicks, bullish engulfing candles, or notable volume increases, it may be a strong indication that this level is holding firm.

CryptoPulse stresses the importance of patience in this scenario. Rather than rushing to enter trades, traders should wait for the price to establish itself. When both fundamental and technical analyses converge on a single price level, the likelihood of a robust follow-through increases. Confirming the trend rather than speculating is crucial for building a solid position in such setups.

Solana

SOL trading at $136 on the 1D chart | Source: SOLUSDT on Tradingview.com