#Solana Faces Critical Pullback as Price Hovers Above Key Support Zone
#Solana is currently experiencing a corrective phase after its recent rally, with price action stabilizing around $162 — slightly above the crucial $154–$148 zone. This movement aligns with what's typically identified as Wave 2 in the Elliott Wave Theory — a natural cooldown that follows the initial impulsive Wave 1. This stage often reflects profit-taking by early buyers, creating a temporary dip before the next bullish breakout.
In #Elliott Wave structure, Wave 2 retraces part of Wave 1’s gains, but crucially, it should not fall below the origin of the first wave — preserving the bullish setup. Common retracement targets are the 50% to 70.5% Fibonacci levels, where investor interest often resurfaces. These zones are seen as potential launchpads for Wave 3, which is usually the most aggressive leg upward. With Solana still holding above the key retracement area, market watchers are closely monitoring this zone for bullish reversal signals that could indicate the next strong upward move is on the horizon.