Solana ($SOL ) continues to outperform both Bitcoin and Ethereum, showing impressive strength on the smaller timeframes. While the broader structure remains intact, the current price action suggests we are deep in a third wave rally possibly even a “third of a third,” which often comes with aggressive extensions.
🔎 Wave Structure Overview
The wave 2 bottom likely formed back in August.
Since then, Solana has been consistently printing higher lows and finally broke out into a new bullish leg.
The ongoing move aligns with a third wave diagonal structure, which is notoriously tricky to track but has followed the Elliott Wave blueprint surprisingly well.
📈 Third Wave Extensions in Play
Third waves are often longer and more aggressive than expected. That’s exactly what we’re witnessing here:
The C-wave of this third wave should unfold as a five-wave move.
Ideally, a healthy wave 4 correction could bring price down to the $225 zone.
Current support levels to watch:
$215 – $232 (key uptrend range)
$224 (trend channel / wedge support)
⚖️ Wave 4 or Further Extension?
Right now, it’s unclear whether we are:
1. Already entering wave 4 consolidation, or
2. Simply witnessing further extensions of wave 3.
That’s the challenge of tracking Solana on small timeframes trying to count every micro wave often produces false signals. What really matters is the bigger picture:
As long as Solana holds above $215, the uptrend remains firmly intact.
A deeper pullback would be healthy, but not mandatory. If price pushes higher directly, it simply confirms a stronger extension of wave 3.
