- Solana is holding above key support at $176 as traders assess whether the Wave 4 correction has ended or will deepen.
- Technical indicators suggest a possible rebound, but a drop to $164 remains a risk if support fails.
Solana’s price action has drawn intense attention as it hovers above key support levels, testing whether its current pullback has run its course or if another dip is still in play. As of writing, SOL trades at $184.64, reflecting a 4.1% daily drop and a 6% slide over the week, according to CoinGecko.
Solana Elliott Wave Count Suggests a Turning Point
Veteran trader Matthew Dixon shared a compelling Elliott Wave analysis suggesting Solana may have already completed Wave 4 of its cycle. According to Dixon, $176, which aligns with the 0.618 Fibonacci retracement, could serve as the correction bottom if buyers regain control.
The structure shows a potential Wave 5 rally looming, but if SOL breaks below $176, traders will closely monitor $171 and $164, the latter being the 100% Fibonacci extension and Dixon’s preferred entry level.
Technicals Signal Possible Upside
The Relative Strength Index (RSI) is showing a bullish divergence, implying that although selling pressure exists, it might be weakening. Still, with RSI below 50, Solana remains in neutral territory, awaiting a decisive move. A push above the 0.382 retracement level around $183 could act as a springboard toward $185 and beyond, possibly marking the start of Wave 5.
Traders Prepare for the Next Move
Solana is standing at a crossroads. If it maintains strength above $176 and especially $171, the bullish outlook remains intact. However, slipping toward $164 could signal a deeper correction before any real recovery. The next few trading sessions will likely decide whether SOL will bounce or face another dip before resuming its upward trend.
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