Solana’s price movement suggests the correction may not be over. Although buyers are stepping in at key levels, the overall structure indicates there could be one final test of lower prices before a lasting upward trend can begin.
Wave IV May Still Need Completion
Analyst More Crypto Online notes that Solana’s chart structure still allows for another downward move to finish the current correction. In the primary scenario, the price action fits a C-wave decline within a larger wave IV correction. This view remains valid as long as the structure doesn’t turn impulsively bullish.
Even under an alternate scenario, the current pullback could be seen as an A-wave, which would still allow for another low before a B-wave recovery or a potential fifth wave upward begins. Both interpretations suggest the correction may not be complete yet.
In the short term, the chart indicates Solana could move lower toward the $81 to $90 range. There are currently no clear structural signals for an immediate bullish reversal, as the lack of strong upward momentum keeps downside possibilities open.
However, if the price turns higher from current levels without making a new low, the pattern since January 2025 would start to look more like a triangular consolidation than a finished wave IV. This would imply more sideways trading rather than a quick return to an uptrend. Until stronger bullish momentum emerges, the risk of one more corrective low remains.
Holding the 50% Fibonacci Level Shows Buyer Strength
AltCoin Việt Nam points out that Solana is showing a strong and controlled reaction around the 50% Fibonacci retracement level. Instead of breaking down sharply, the price is rebounding in an orderly way, indicating buyers still have influence.
From a wave perspective, wave IV does not seem to be rushing to finish, leaving room for wave C to extend further if the market follows the broader rhythm.
Adding to the positive bias is the ongoing Solana ETF narrative. Spot SOL inflows are not driven by hype but by steady accumulation over multiple sessions. This type of capital flow often reflects long-term positioning rather than short-term speculation, which helps explain why the price tends to bounce back quickly when it tests key support areas.
This outlook does have a potential invalidation point: a sustained drop below the 50% Fibonacci level would signal a breakdown of the current structure. However, the analyst views recent pauses as temporary breathers within a larger upward trend, not the start of a significant downtrend.
Frequently Asked Questions
FAQs Solana Price Action Potential Decline Before a Rally
BeginnerLevel Questions
1 What does it mean when analysts say Solana might face one more decline before a rally
This means that based on current technical analysis the price of Solana is expected to drop to a lower level one more time before it potentially starts a significant upward trend
2 Why would the price drop before going up
In markets prices dont move in straight lines A final decline can shake out weaker investors consolidate the price at a stronger support level and build energy for a more sustainable rally Think of it like pulling back a slingshot before launching
3 What is a rally in crypto
A rally is a period of sustained and significant price increase For Solana this would mean its price rising strongly over days or weeks often driven by positive news increased adoption or broader market optimism
4 Is this prediction guaranteed to happen
No Price predictions based on technical analysis are not guarantees They are educated guesses about probable scenarios based on past patterns Always be prepared for the market to move unexpectedly
5 As a beginner what should I do with this information
Use it for education not direct investment advice Understand the risks If youre considering investing focus on learning about dollarcost averaging and never invest more than you can afford to lose
AdvancedLevel Questions
6 What specific technical patterns or indicators are suggesting this one more decline scenario
Analysts often look for patterns like a falling wedge a doubletriple bottom test or bearish divergence on oscillators on lower time frames indicating selling pressure isnt fully exhausted The key is often a retest of a major support level
7 What would invalidate this decline then rally thesis
A clear and strong breakout above a key recent resistance level would suggest bullish momentum is taking over immediately Conversely a breakdown below major longterm support could signal a deeper more prolonged downtrend instead of a final decline