Can Solana Mount a Trend Reversal? | Credit: Hameem Sarwar
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Key Takeaways
Solana’s (SOL) price fell below the middle of its long-term range.
SOL broke down from a channel, finishing an A-B-C correction.
Could Solana begin a short-term bounce within a broader bearish trend?
SOL is showing weakness after months of fluctuating within a defined price range.
The cryptocurrency has broken key support levels, signaling a potential continuation of its downward trend.
With bearish indicators and technical structures forming, traders are closely watching to see if SOL can stage a short-term rebound or if further losses lie ahead.
Solana’s Bearish Price Action
The weekly time frame indicates that the price of Solana has traded within a long-term range of $120-$250 since December 2023.
Solana reached its all-time high of $295 in January, briefly breaking out from the range high but failing to sustain the increase.
Then, the Solana price bounced at the range low and hit the range high again, creating a lower high (red icon) before falling.
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This week, the price of Solana crashed, falling below the middle of the range and hitting a low of $145.85.
Although SOL has not yet closed below the midrange, it is likely to do so, confirming that the price will head lower.
Momentum indicators confirm this bearish hypothesis. The Relative Strength Index (RSI) is below 50, and the Moving Average Convergence/Divergence (MACD) has made a bearish cross.
In conclusion, Solana’s price action and indicator readings all suggest a bearish prediction, confirming that SOL will head lower, potentially reaching the range low at $120.
The defining characteristic of this count is that wave B was contained inside an ascending parallel channel, which is a sign of a corrective structure.
This week’s breakdown confirms that the trend is bearish and wave C is underway.
Although the long-term trend is bearish, a short-term bounce in Solana within this downtrend may occur soon.
The price of SOL has completed a five-wave downward movement (green) in a leading diagonal, as noted by its wedge shape (green).
This means the first portion of the long-term wave C is over, and a significant bounce could occur.
However, because of the long-term bearish price action, Solana is unlikely to reach new highs. Instead, it could get a high of $180 before crashing again.
Bounce Before Breakdown
Solana’s breakdown suggests the bullish phase is likely over for now.
While a temporary bounce could push prices toward $180, this is likely to be a brief movement within a broader bearish trend.
Unless SOL regains key support levels, the path toward lower targets, possibly near $120 or even $60, appears increasingly likely.
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.
