Solana (SOL) is showing early signs of stabilization after a recent pullback, with price action settling into a defined channel and buying interest beginning to return. Market technicians say the short-term momentum is shifting away from the downside and toward a corrective upswing—if certain technical conditions hold.
Corrective recovery shaping up
On the 1-hour chart, analysts at Elliott Waves Academy outline a potential short-term structure change: downside momentum is cooling, opening the door for a corrective phase that could reshape the near-term trend. One likely scenario is a corrective wave—labelled as wave (2)/(B)—developing into a double zigzag, a pattern commonly seen when the market retraces more deeply while buyers gradually re-enter.
Key confirmation would come from a decisive breakout above the upper boundary of the current diagonal pattern. Further validation would be a move that clears the level associated with the previous bearish wave, signaling that selling pressure is losing steam.
Fibonacci targets and risk points
From a Fibonacci perspective, the most probable recovery zone sits between the 50% and 61.8% retracement levels of the prior decline—areas that often attract buying during corrective moves. If bullish momentum builds, price could extend toward the 78.6% retracement.
That said, this retracement region is also a make-or-break area: if selling pressure intensifies there and the zone becomes strong resistance, it could trigger the next leg lower and resume the broader bearish wave. Conversely, the formation of impulsive up-waves coupled with a series of higher lows—without revisiting the previous bottom—would increase the odds of a more sustained upside beyond the corrective phase.
Reversal zone and early bounce
Crypto analyst BitGuru notes that Solana has entered a key reversal zone and is showing an early bounce, suggesting the market may be attempting to establish a short-term floor. As selling pressure eases, demand in historically relevant zones can attract buyers and set the stage for a structured recovery.
What to watch next
- Breakout above the upper diagonal: early confirmation of the corrective scenario.
- Acceptance above the prior bearish-wave level: signals weakening supply.
- Price behavior near the 50–61.8% retracement (and possible extension to 78.6%): determines whether the move is a sustained recovery or a setup for renewed selling.
- Pattern of higher lows without retesting the previous bottom: bullish signal for a more durable uptrend.
Bottom line: technicians see the conditions for a corrective recovery in Solana if buyers can maintain support and build momentum. However, the retracement zone will be pivotal—either a staging area for a rebound or a resistance barrier that reignites downside pressure.
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