Solana (SOL) Technical Market Analysis
Solana has reached a key Fibonacci resistance zone between $180 and $191, showing early signs of a potential Wave 2 correction in progress. The recent upside move appears technically and visually complete, with a full 5-wave Elliott structure visible from the April lows.
However, despite the reaction at resistance, there's no confirmed top yet as the market remains in a higher-highs, higher-lows uptrend. For a solid confirmation, price needs to break below key swing lows at:
$172 (Initial Signal)
$165.90 (Confirmation)
Wave 2 Support Zone:
$143.51 – $109.78
This zone is the expected retracement area for Wave 2 and offers potential long re-entry opportunities.
Upside Scenario:
If price breaks above the trendline resistance, $191.25 is the next upside target. A breakout could delay the Wave 2 correction and extend Wave 5.
Trade Setup (Conservative Short-Term Correction Trade):
Entry (Short-term Short): $180–$190 (with confirmation below $172)
Target 1: $165.90
Target 2: $143.51
Target 3: $109.78
Stop Loss: Above $192
Leverage: 5x–10x (adjust risk accordingly)
Risk Allocation: 3–5% of wallet
Key Notes:
A channel break to the downside would further support a corrective move.
Keep an eye on short-term price action. If the market forms a bull flag and breaks up, invalidation may occur.
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