Solana (SOL) Market Analysis – Choppy but Constructive Structure

Overview:

Solana is maintaining a generally bullish structure despite choppy price action. The asset previously reacted strongly at the 161.8% Fibonacci extension in April and has since been developing a potential five-wave Elliott structure to the upside.

Technical Insights:

Primary Wave Count: Yellow count is preferred, suggesting SOL is in a developing 5-wave move (likely Wave 1 or Wave A).

Short-Term Behavior: Current structure shows sideways action after a likely top in Wave 3. Wave 4 may not be complete but is nearing final stages.

Pattern Watch: A possible head-and-shoulders pattern is forming. Breaking below April 24th’s low could trigger a deeper correction.

Support Zone: $141.86 – $135.22 (if Wave 4 deepens further)

Resistance Zone: Around previous highs, watching for bullish breakout continuation.

Trade Plan:

Entry 1 (Aggressive): $140 – $143 (pre-emptive buy in support zone)

Entry 2 (Conservative): $135 – $137 (deeper retracement, stronger confluence)

Stop-Loss: $129 (below invalidation and key support)

Target 1: $160 (resistance near Wave 3 top)

Target 2: $175 – $180 (Wave 5 extension zone)

Target 3 (Mid-term): $200+ (macro breakout if momentum sustains)

Strategy Note:

We remain cautiously bullish while monitoring how Wave 4 develops. A clean break and retest of support followed by upward momentum would increase confidence in the ongoing wave count. B waves are notorious for their unpredictability—stay adaptive.

Sentiment: Bullish bias with cautious stance until Wave 4 completes.

$SOL

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