- Solana’s corrective c-wave is nearing completion near the $189.49 buy zone, aligning with Fibonacci support levels.
- The RSI reading of 36.41 indicates decreasing bearish pressure and potential accumulation near current price levels.
- Maintaining support above $189.49 could trigger renewed upward momentum and signal early stabilization in Solana’s structure.
Solana (SOL) appears to be entering a critical technical phase as the current corrective wave approaches a major support region. The asset’s market structure shows an active retracement, aligning closely with the 100% projection of the previous a-wave, where c equals a. Market observers notice that such levels usually are a likely zone of accumulation, representing expanding buying interest by investors willing to carry out a gradual dollar-cost averaging (DCA) approach.
Solana was trading at $196.87 at the time of writing, down 12.8% on the week . While declining, the chart configuration still has a clean corrective pattern that is characteristic of a measured pullback and not a total reversal of trend. The support is still firm at $189.49, while resistance in the short term is at $204.32. Solana is technically trading 2.3% higher against Bitcoin at 0.001769 BTC, which is indicative of weak relative strength.
Technical Structure and Wave Analysis
Based on the one-hour chart, Solana’s corrective pattern appears to be unfolding within a measured Elliott Wave framework. The “c” wave is advancing toward the first Fibonacci extension target, which aligns with the 100% extension of the a-wave. This area has been identified as the buy zone, located slightly above $189, representing the first level of technical interest.
Furthermore, the Fibonacci retracement levels between 0.236 and 0.382 continue to act as minor resistances. The recent decline from $210.29 to the current range confirms that short-term momentum has shifted into a controlled consolidation phase. However, as the “c” wave nears completion, several traders are observing early recovery signals within this buy zone before the next potential upward impulse.
Technical Indicators Suggest Stabilization
Momentum indicators support the ongoing correction, with the Relative Strength Index (RSI) reading 36.41. The RSI’s position near the lower range indicates weakening selling pressure. Historically, values below 40 have aligned with short-term reversals or periods of accumulation.
Additionally, the RSI’s gradual flattening pattern suggests early stabilization, hinting that bearish momentum may be losing strength. The consistent interaction between RSI and its moving average supports this observation. Analysts highlight that this type of momentum behavior often precedes range-bound consolidation before renewed directional movement.
Outlook and Market Implications
The chart structure of Solana shows that the asset is in a wider uptrend even though it is still weak in short-term. The current correction is an aspect of a normal retracement after a previous rally and not structural disintegration.
When the price continues to hold above the level of $189.49 support, it might indicate a stability in the overall system in the market. This would therefore see the new buy zone slowly accumulate with traders looking forward to new attempts at upside as it corrects.
The overall consistency in the count of waves, Fibonacci projections, and RSI positioning all suggest a possible recovery as soon as the short- to long-term selling pressure has been removed.
