After a sharp selloff that reinforced bearish momentum, Solana (SOL) looks to be settling into a consolidation phase — potentially the Wave 4 correction in Elliott Wave terms. That pause could provide short-term relief for bulls, but it may also set the stage for another leg down if selling pressure reignites.
Elliott Waves Academy’s short-term (30-minute) outlook points to a decisive breakdown from Solana’s price channel and says sellers remain in control of the broader trend. The analysis notes wave 3 appears to have ended at the 261.80% Fibonacci extension, identifying it as the most impulsive phase that pushed the structure lower. With wave 3 complete, the market is likely in wave 4 — a corrective period that historically unfolds as sideways consolidation or a corrective triangle, especially after aggressive prior moves. Once that corrective structure finishes, a breakdown beneath the correction’s key support could trigger wave 5 and open the door to targets in the $81.33–$78.69 range.
Supporting the theme of consolidation-to-breakout, analyst Daan Crypto Trades highlighted how SOL produced the textbook 20–30% move after finally breaking out of a multi-month trading range. Extended consolidations often compress volatility and then unleash rapid momentum when a range is decisively cleared — which is why Daan stresses waiting for confirmation rather than trying to predict a move prematurely.
Right now Solana is retesting an important weekly support area that Daan describes as one of the last major supports on the chart. Holding that zone and reclaiming nearby horizontal resistance would be critical for bulls aiming to rebuild momentum; failure to do so would favor the bearish scenario and increase the likelihood of the next downside leg.
Bottom line: Solana’s near-term path hinges on whether the current Wave 4 consolidation stabilizes into a base for recovery or collapses into a Wave 5 decline toward the $81–$79 band. Traders should watch the weekly support test and wait for confirmed price action before committing directional bets.
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