Solana has entered a Wave 4 correction after completing Wave 3 at the 261.8% Fibonacci extension level, according to technical analysis. The cryptocurrency, which recently broke out of a multi-month trading range, is now retesting a crucial weekly support zone that analysts consider one of the last major floors on the chart.
Wave 4 Pattern Emerges
The move follows a three-month consolidation period that ended with a breakout delivering a 20–30% price gain. That rally, identified as Wave 3, topped out at the 261.8% Fibonacci extension level, a common target for impulsive waves in Elliott Wave theory. Now, Wave 4 is expected to be a subdued corrective phase, likely forming a sideways consolidation or triangle pattern rather than a sharp decline.
Traders are watching whether Solana can hold above the current weekly support. If it does, and reclaims key horizontal resistance levels, the bullish momentum could resume. But the correction is still in its early stages, and the shape of the pattern remains uncertain.
Critical Weekly Support in Focus
The support level being tested is one of the last major zones on the chart. It held during the multi-month trading range that preceded the breakout. If Solana stays above it, the broader uptrend remains intact. A breakdown below that support, however, could trigger the next impulsive move: Wave 5.
That wave would target the $81.33–$78.69 zone, a level that would represent a significant decline from current prices. The target zone is derived from standard Fibonacci relationships and assumes the correction completes cleanly before the next leg down.
What a Breakdown Could Mean
A breakdown below the correction's support would signal that sellers have gained control, at least in the short term. Wave 5 waves in a bearish context often accelerate as stop-losses get triggered and momentum traders pile in. The $81–$78 area is well below where Solana traded during its consolidation phase, which means the market would have given back all the gains from the breakout and then some.
Still, the correction pattern itself — a triangle or sideways consolidation — suggests that the current move is more about pausing than reversing. Triangles are typically continuation patterns, meaning the trend that preceded them — in this case, the uptrend — should eventually resume. But Elliott Wave rules require the correction to stay within certain boundaries, and a break of the support line would invalidate the bullish count.
For now, the market waits. Solana's price action over the next few sessions will determine whether the weekly support holds and the uptrend resumes, or whether a deeper pullback to the $80 range becomes the next milestone.
