Solana (SOL) Price Tests $140 as Bullish Momentum Fades — What’s Next?

Key Takeaways

• SOL’s recent dip signals a continuation of the bearish trend.
• $140 is a pivotal level for future price direction.
• SOL could drop to $125 amid ongoing corrections.

This report provides an overview of Solana’s (SOL) recent price dynamics, focusing on its attempts to break key resistance levels and the implications of its current downward trend.

With significant price fluctuations and critical support zones at play, we assess potential scenarios that could influence SOL’s trajectory in the near term.

As SOL dipped below $140, it invalidated a bullish scenario, but how bearish is this as it still holds above $140?

Solana Price Analysis

On July 20, SOL broke through its descending resistance, signaling a potential bullish trend if it could maintain its position above this critical level.

However, the inability to hold support indicated that the corrective pattern that began in mid-March remained active, causing SOL to retreat to its horizontal support near $120 by Aug. 5.

A descending flat triangle formed as selling pressure increased, yet buyers continued to provide support. This support level was retested on Sept. 6, leading to a price bounce that contributed to SOL’s recent rally.

The higher low established on Sept.16 suggests the beginning of an uptrend, though the peak at $160 on Sept. 27 could not break through the significant horizontal resistance zone.

SOL has experienced a 5.30% decrease, trading at $143. This came after a dip below horizontal support/resistance of $140 on a 17.50% decline since Sept. 27.

As it failed to make a decisive breakout above the descending and horizontal resistances, it is now likely to continue moving down, but what happens at $140 will provide further clues. 

SOL Price Prediction

Our previous analysis presented two potential scenarios, depending on whether the WXYXZ correction concluded at the low of Sept. 6. The interpretation of the rise following September 6 is crucial.

In the first scenario, SOL may have initiated a new uptrend, potentially leading to a stronger upward movement and a breakout above the horizontal resistance.

If SOL surpassed $160, it would confirm a five-wave impulse and strengthen the uptrend.

Conversely, SOL’s rise could be corrective in the second scenario, with resistance remaining below $160. Recent rejection and a move below its invalidation zone at $140 proved a bearish scenario to be in play.

This is because, according to the Elliott Wave Theory, wave 4 cannot enter the territory of wave 1, which is what happened as SOL fell to $132 on Oct. 3. 

Since its previous rise is now labeled as the ABC to the upside until Sept. 27, a subsequent downturn would be the first sub-wave of a downtrend sequence. This makes its last recovery from Oct. 3 a corrective one, and the current decline a downtrend continuation. 

In the short term, we could see SOL fall to $125, with another horizontal support. Will this conclude its long-lasting correction since mid-March? We have yet to see. 

Read more: Solana Price Prediction 2024: SOL Price Analysis