Solana Wave 4 In Progress: Relief Bounce Or Setup For A Fresh Decline?

After a steep selloff that reinforced bearish momentum, Solana appears to be entering a period of consolidation as Wave 4 unfolds. Such corrective phases often offer short-term relief and can also serve as a launching pad for the next leg of a downtrend. As the market searches for direction, the key question remains whether buyers can build a meaningful recovery or if another decline is waiting around the corner. Wave 4 Correction Takes Shape Amid Cooling Selling Pressure Analyzing Solana’s wave outlook on the 30-minute time frame, Elliott Waves Academy noted that the pair may be gearing up for another significant downside move following a decisive breakdown from its price channel. The recent decline has reinforced bearish sentiment, with price action signaling that sellers remain firmly in control of the broader trend. Related Reading: Why It’s Time To Start Paying Attention To Solana Before It Stages A Repeat Of 2024 According to the analysis, Solana has already reached the 261.80 Fibonacci extension level, suggesting that wave 3 has completed. As the strongest and most impulsive phase of the trend, wave 3 has played a key role in driving the current bearish structure lower. With wave 3 finished, the market appears to have entered wave 4, a corrective phase that typically follows an extended decline. Given the aggressive nature of wave 2 earlier in the sequence, wave four is expected to be more subdued, likely developing through sideways consolidation or a corrective triangle formation as the market temporarily stabilizes. Once the corrective structure is complete, attention will shift to the next bearish leg. A breakdown below the key support level of the correction could trigger wave five, opening the door for a decline toward the 81.33–78.69 zone, representing the next downside targets for bearish traders. Three Months Of Consolidation Unleash A Powerful Breakout For Solana Crypto analyst Daan Crypto Trades pointed out that Solana delivered the expected 20–30 move after finally breaking out of its multi-month trading range. Such explosive price action is often seen after extended periods of consolidation, where volatility remains compressed before a decisive breakout triggers a strong directional move. Related Reading: Solana Just Made History, Could A Massive Recovery Be Next? The analyst emphasized the importance of waiting for confirmation. Once price escapes a range that has held for more than three months, momentum tends to accelerate rapidly, creating sizable opportunities for traders who react to the confirmed move rather than trying to predict it. Solana is now retesting a crucial weekly support level. According to Daan, this area represents one of the last major support zones on the chart, making it a critical battleground for bulls. Holding this level and reclaiming key horizontal resistance levels above could help restore bullish momentum and strengthen the case for another upward leg. Featured image from iStock, chart from Tradingview.com