Has Solana Bottom Or Will it Crash Further? | Credit: Hameem Sarwar
Share
Key Takeaways
Solana’s (SOL) ETF with staking went live on Nov. 18.
The SOL price created a bullish engulfing candlestick.
Will the positive Solana news trigger a breakout?
Fidelity Investments has launched its new Exchange-Traded Fund (ETF) with staking capabilities. The Fidelity SOL Fund (FSOL) includes staking rewards, similar to those from Bitwise and Grayscale.
Following this positive news, the Solana price formed a bullish candlestick, confirming both horizontal and diagonal support levels.
Although SOL still trades within the confines of its pattern, the bullish engulfing candlestick could be the first step toward an eventual breakout and new highs.
Solana Creates Bullish Pattern
The SOL price has fallen by nearly 50% since its cycle high of $254 on Sept. 18. The decrease has been gradual, combining periods of sharp and gradual falls with choppy upward movement.
Solana’s price action has also created a descending wedge, considered a bullish pattern.
Get These Top Crypto Casino Offers Now!
Sponsored
Disclosure
We sometimes use affiliate links in our content, when clicking on those we might receive a commission at no extra cost to you. By using this website you agree to our terms and conditions and privacy policy.
While the Solana price action is promising, momentum indicators are not. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are in bearish territory, and neither has generated any bullish divergences.
Therefore, Solana’s daily price action is insufficient to determine whether the trend is bullish or bearish. Whether SOL breaks out from the wedge or breaks down below $130 will likely determine the future trend.
Why is Solana Going Down?
Although the short-term Solana price action offers hope, the long-term weekly chart remains decisively bearish.
Solana’s weekly wave count shows a completed five-wave upward movement (green) since the cycle low in December 2022.
After its all-time high, SOL began a corrective A-B-C structure and is currently in wave C.
The primary confirmation that Solana started wave C is the breakout from the ascending parallel channel that contained the previous bounce.
Now, a weekly close below $130 could open the floodgates to much lower prices.
The bearish RSI and MACD (black circles) confirm this prediction, suggesting that Solana’s correction will continue well into 2026.
Nevertheless, the fact that the long- and short-term support levels coincide with each other increases the likelihood of a short-term bounce, even if that is unlikely to lead to anything more than a relief rally.
No Bottom in Sight
Solana created a bullish candlestick after positive ETF news yesterday, but the price is already reversing its gains today.
While the ETF news is positive, it does not always lead to a price bounce, as was the case with the successful XRP ETF launch last week.
Since Solana’s long-term trend is also bearish, it is unlikely that the short-term bounce could be the start of a bigger rally.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
