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Solana Market Update: Short-Term Bounce Possible
Solana (SOL) has displayed weakness after months of trading within a defined range. After fluctuating between $120 and $250 since December 2023, the cryptocurrency has recently broken several critical support levels, signaling the potential for continued downward movement.
According to recent weekly charts, SOL briefly reached its all-time high of $295 in January, temporarily breaking the upper range before failing to maintain momentum. After bouncing off the range low, SOL made another attempt toward the high, forming a lower high before declining again. This week, SOL dipped below the midpoint of its range, hitting a low of $145.85. Although the price has not yet closed below the midrange, technical analysts suggest it is likely to do so, which would confirm a bearish trend continuation.
Technical Indicators Point to Downward Pressure
Momentum indicators reinforce the bearish outlook for Solana. The Relative Strength Index (RSI) remains below 50, indicating weaker buying pressure, while the Moving Average Convergence/Divergence (MACD) has formed a bearish cross, suggesting that downward momentum is strengthening.
As noted by analysts, “Solana’s price action and indicator readings all suggest a bearish prediction, confirming that SOL will head lower, potentially reaching the range low at $120.”
Long-Term Wave Structure Supports Bearish Trend
A closer look at Solana’s long-term wave patterns suggests even more downside potential. Since the start of 2023, SOL completed a five-wave upward movement culminating in its $295 all-time high. This peak marked the beginning of a corrective A-B-C structure, with the current phase identified as wave C.
If this count is accurate, wave C could eventually bring Solana toward levels between $59 and $69. A defining characteristic of this pattern is that wave B remained inside an ascending parallel channel, a common sign of corrective price action. The recent breakdown confirms that this long-term corrective phase is underway.
Possibility of Short-Term Rebound
Despite the long-term bearish structure, a temporary bounce within the downtrend is possible. The initial portion of wave C shows a completed five-wave downward move in a leading diagonal pattern, indicating that a short-term rebound could occur. This rebound may push prices toward $180, though it is unlikely to sustain a reversal to new highs.
Market watchers note, “Solana could see a high of $180 before continuing its broader downtrend,” highlighting the limited nature of any temporary recovery.
Bounce Likely to Be Brief
The recent breakdown suggests that the bullish phase for Solana is over, at least temporarily. Short-term upward movements may occur within the larger bearish trend, but unless SOL regains key support levels, the probability of further declines remains high. Analysts project that prices could retest the lower end of the range near $120, with the possibility of falling further toward $60 if bearish momentum persists.
Solana’s current trading behavior reflects significant downward pressure following months of range-bound activity. Technical indicators and long-term wave analysis point to a bearish continuation, with a potential short-term bounce offering only temporary relief. Momentum readings such as the RSI and MACD reinforce the likelihood of further losses, while the A-B-C corrective wave structure indicates that SOL may be headed toward lower targets over the coming months.
In conclusion, Solana’s technical profile and recent price action suggest a market under sustained selling pressure, with any short-term rebounds unlikely to signal a major trend reversal. Traders and analysts are closely monitoring support levels around $145 and $120 to gauge the potential trajectory of this leading cryptocurrency.
