Solana (SOL) is showing early signs of recovery after a recent pullback, with price action settling into a defined channel and selling pressure beginning to ease. As buyers tentatively return, momentum appears to be tilting toward a corrective upswing that could reshape the short-term trend.
Elliott Waves Academy’s 1-hour wave outlook suggests the short-term structure is shifting: downside momentum is cooling, opening the possibility of a corrective phase, potentially labeled as wave (2)/(B). One plausible path is a double zigzag corrective pattern — a common formation when the market attempts a deeper retracement while buyers gradually re-enter.
Key confirmations for this bullish-correction scenario would be a decisive breakout above the upper diagonal boundary and a clearance of the level tied to the previous bearish leg. From a Fibonacci standpoint, the most plausible recovery zone sits between the 50% and 61.8% retracement levels of the prior drop, with an extension toward the 78.6% level if bullish momentum strengthens. Conversely, if that retracement band turns into a strong resistance zone and selling intensifies there, it could set up the next leg down. Conversely again, the appearance of impulsive waves, higher lows and no revisit of the prior bottom would raise the odds of a sustained upside beyond the corrective phase.
Independent analyst BitGuru notes SOL has entered a key reversal zone and is showing an early bounce, indicating the market may be attempting to establish a short-term floor. As selling pressure fades in this area, demand historically associated with such zones can attract buyers and support a recovery. If SOL holds this support and continues to form higher lows, the current bounce could evolve into a more structured recovery, with the upper boundary of the recent range as a near-term target.
What to watch
- A clean breakout above the diagonal’s upper boundary for early bullish confirmation
- Fibonacci retracement band (50%–61.8%) as the primary recovery zone; 78.6% as an extended target if momentum builds
- Whether sellers reassert themselves in the retracement zone (bearish) or price produces impulsive higher lows without revisiting the low (bullish)
In short, Solana’s immediate setup leans toward a corrective rebound, but the market’s next directional bias will hinge on how price behaves around those key technical zones.
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