Solana at a Crossroads: Will Demand Hold or Deeper Dips Loom?
Solana (SOL) has recently slipped into a crucial demand zone, prompting investors and analysts to question whether the popular cryptocurrency is poised for a significant rebound or a further decline. Trading between $118 and $138, this price band is now a critical battleground where buyers must decisively demonstrate their resolve to prevent further depreciation.
Solana Tests Key Support Levels
Analysts have identified this crucial support band, stretching from $118 to approximately $138.30, as a pivotal area for Solana. The market's ability to maintain these levels is paramount to avert further structural depreciation. While initial reactions and minor upticks have been observed within this zone, experts caution that these movements currently lack the conviction and sustained buying strength needed to signal a definitive reversal. The overall market momentum remains subdued, keeping the possibility of further downside firmly in play.
Bullish Hopes vs. Bearish Reality
Despite the prevailing weakness, a "white scenario" offers a glimmer of bullish hope. This optimistic outlook suggests that the current B-wave correction could conclude within the existing support region, potentially establishing a solid bottom. Such a confirmation would pave the way for a powerful C-wave rally, allowing Solana to challenge its previous cycle highs. However, the primary hurdle preventing a firm bullish forecast is the absence of an impulsive advance from the recent lows. Without strong, decisive buying pressure, a deeper dip remains the more realistic trajectory, according to market observers.
Elliott Wave Signals Further Correction
Further technical analysis, particularly within the Elliott Wave framework, indicates that Solana's price action continues to mirror broader market trends. The ongoing price decline could be interpreted as an A-B-C corrective pattern, with the final C-wave still unfolding as a five-legged move. If this bearish interpretation holds true, SOL could see its price extend further down, potentially targeting the $81 to $90 range. Until a clear, impulsive upward shift in market structure is confirmed, traders are advised to remain cautious and prepare for the possibility of additional price tests below current support.
