- SOL rejects 50% Fibonacci $136.66 confirming Elliott Wave corrective wave A structure intact.
- Wave (5) targets brown Fib cluster $127.91→$122.89→$119.97 if $134.66 micro-resistance holds.
- RSI oversold lacks divergence—$127.91 break accelerates to $120 amid DeFi/NFT competition.
The volatile world of cryptocurrency, Solana (SOL) continues to capture attention with its high-speed blockchain and growing ecosystem. However, recent technical analysis suggests the asset may be poised for further downside. According to a detailed chart shared by crypto analyst @morecryptoDE on X, SOL has respected a predefined resistance zone, leading to an adjustment in micro-resistance levels amid today’s price drop.
Elliott Wave A Unfolds
The 1-hour chart on Binance shows SOL/USD trading around $134, with a series of Fibonacci retracement levels marking key support and resistance points. The analysis employs Elliott Wave theory, a popular method for predicting market cycles based on crowd psychology. Here, the price action is interpreted as part of a corrective wave A in a larger pattern. Subwaves (1) through (4) are labeled, with wave (5) expected to push the price to a new low within this structure.
Key resistance sits at the 50% Fibonacci level of $136.66, which the price has failed to breach, reinforcing bearish sentiment. Below that, the 38.2% level at $134.66 acts as immediate micro-resistance. On the downside, support zones are clustered in brown bands, including 61.8% at $127.91, 78.6% at $122.89, and 88.7% at $119.97. A yellow descending trendline further emphasizes the downward trajectory, suggesting that as long as SOL remains below $136.66, wave A could extend deeper.
Bearish Trajectory
This comes amid broader market dynamics for Solana. Despite its strengths in DeFi and NFTs, external factors like regulatory scrutiny and competition from Ethereum layer-2 solutions could amplify corrections. Traders should watch for volume spikes or divergences in indicators like RSI, which currently hovers near oversold territory on the chart.
For investors, this analysis underscores the importance of risk management. While Solana’s fundamentals remain strong—with ongoing upgrades like Firedancer aiming to boost performance—short-term technicals point to caution. If the price breaks below $127.91, it could accelerate selling toward $120.
Conversely, a reclaim of $136.66 might invalidate the bearish setup, opening doors to resistance at $140.27. Overall, this Elliott Wave perspective provides a roadmap for navigating SOL’s near-term moves, reminding us that crypto markets thrive on patterns and patience.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
