- Solana appears to be forming a Wave 4 correction after completing a strong bearish Wave 3 move.
- A breakdown from the current corrective structure could bring the $81.33 to $78.69 range into focus.
- SOL is retesting a major weekly support level that may decide whether bulls can recover momentum.
Solana is trying to catch its breath after a sharp selloff that pushed bearish momentum back into focus. The recent move lower has left traders watching closely as SOL appears to enter a Wave 4 correction, a phase that often brings short-term relief after an aggressive decline. Still, this kind of pause does not always mean a full recovery is starting. Sometimes, it is simply the market taking a breath before the next leg down.
The bigger question now is whether buyers can use this consolidation phase to rebuild strength, or whether sellers are just waiting for another clean breakdown. For now, Solana remains under pressure, and the chart suggests that the next move could be important for both short-term traders and longer-term holders.
Wave 4 Correction Begins to Form
According to analysis from Elliott Waves Academy, Solana may be preparing for another major downside move after breaking decisively below its previous price channel. On the 30-minute chart, the structure still leans bearish, with sellers maintaining control of the broader trend despite the current pause in downward momentum.
The analysis notes that Solana has already reached the 261.80% Fibonacci extension level, which suggests that Wave 3 may now be complete. In Elliott Wave theory, Wave 3 is often the strongest and most aggressive part of a trend. That appears to fit Solana’s recent price action, as the decline moved quickly and pushed the market into a weaker technical position.
Now that Wave 3 may be finished, SOL appears to be moving through Wave 4. This stage is usually corrective, and it often develops through sideways movement, choppy consolidation, or even a triangle-style structure. Since Wave 2 was more aggressive earlier in the sequence, analysts expect Wave 4 to be calmer, at least relatively speaking.
Downside Targets Remain in Focus
If the Wave 4 correction completes and Solana breaks below its key support area, traders may begin watching for Wave 5. That next bearish leg could open the door to lower targets near the $81.33 to $78.69 range.
This zone is now becoming an important area for bears, especially if momentum starts building again. A clean breakdown from the current corrective pattern would likely strengthen the case that SOL has not finished its larger move lower. And in a market already dealing with weak sentiment, that kind of signal could attract more selling pressure pretty quickly.
Still, corrective phases can be tricky. They often shake out impatient traders on both sides before choosing a clearer direction. That makes confirmation important, especially for those trying to trade around the current structure rather than guessing where price goes next.
Solana’s Range Breakout Shows Why Patience Matters
Crypto analyst Daan Crypto Trades also pointed out that Solana recently delivered the expected 20% to 30% move after breaking out of a multi-month trading range. That kind of sharp move is common after long periods of consolidation, where volatility stays compressed for weeks or even months before price finally chooses a direction.
The lesson, according to the analyst, is that traders often do better by waiting for confirmation instead of trying to predict every breakout early. Once Solana escaped a range that had held for more than three months, momentum accelerated fast. That created a cleaner opportunity for traders who reacted to the confirmed move rather than forcing a position too soon.
This is especially relevant now because SOL is once again sitting near a major decision area. The market has already shown that when it breaks out of a long structure, the follow-through can be strong.
Weekly Support Becomes the Key Battleground
Solana is now retesting a crucial weekly support level, and this area may decide whether bulls can slow the decline or lose control completely. Daan described this region as one of the last major support zones on the chart, which makes it a key level for traders watching the broader trend.
If Solana holds this support and begins reclaiming important horizontal resistance levels above, bullish momentum could start to rebuild. That would not erase the recent weakness right away, but it would give buyers a stronger argument that the selloff is cooling.
If the level fails, though, the bearish wave count becomes more convincing. A breakdown could send SOL toward the next downside zone and reinforce the idea that the current consolidation is only temporary relief. For now, Solana sits at a crossroads, and the next confirmed move may tell traders whether the market is preparing for recovery, or just another step lower.
