Solana & Binance Coin at Key Juncture: Increases Seen but Will the Upward Momentum Continue?

SOL Price Analysis

The 4-hour chart of SOL demonstrates a continuation of its corrective phase within a descending channel that began after the peak near $264 on Nov. 22. This channel outlines a clear bearish trend, with price movements respecting both the upper and lower boundaries.

Recent price action shows a significant rejection at $190, coinciding with the 0.5 Fibonacci retracement level. This rejection underscores the importance of this resistance as a major hurdle for buyers.

Currently, SOL is consolidating near the $186 level, after a bounce from the 0.618 Fibonacci retracement, which also intersects with the channel’s lower boundary. This confluence creates a strong support zone, evident by recent rebounds off this level. However, the broader trend remains bearish as SOL has not displayed sustained momentum to break above intermediate resistances.

The Relative Strength Index (RSI) on the 4-hour chart reflects neutral to slightly bearish momentum, hovering near the midpoint without overbought or oversold signals. This lack of clear directional bias suggests indecision among market participants.

From an Elliott Wave perspective, the structure is developing into the latter stages of a W-X-Y corrective pattern. The recent rejection at $223 marked the peak of Wave X, with Wave Y now unfolding. The determining factor will be a breakout direction either from the descending channel or horizontal support. Further downside is probable if SOL fails to reclaim $193, with targets potentially extending to $152 (0.786 Fibonacci retracement).

A decisive break above $193 could invalidate the bearish outlook, signaling the beginning of a bullish impulse targeting $230 (0.236 Fibonacci extension) as the next major resistance. For now, SOL remains in a precarious position, with key levels dictating its immediate trajectory.

Key Levels to Watch

• Immediate Resistance: $193.20 (0.5 Fibonacci retracement).
• Secondary Resistance: $230.64 (0.236 Fibonacci extension).
• Immediate Support: $176.47 (0.618 Fibonacci retracement).
• Critical Support: $152.65 (0.786 Fibonacci retracement).
• Short-Term Target: $230.64 if bullish momentum sustains.
• Invalidation Zone: Below $173.42 signals further downside.

BNB Price Analysis

The 4-hour chart for BNB indicates a period of consolidation following a significant impulsive move to a local high near $794 on Dec. 4. This high corresponds to the completion of Wave 3 within an ongoing five-wave impulsive structure.

Since then, BNB has entered a corrective phase, forming an (a)-(b)-(c) structure that appears to have concluded around $620 on Dec. 20. This level has acted as critical support, initiating a recovery, forming a five-wave impulse towards $728 on Dec. 28.

The current price action is testing this $701.3 resistance, which aligns with the 0.236 Fib and forms a pivotal level. A clear break above this zone could signal the beginning of Wave 5, targeting the prior high at $794 and potentially extending toward higher Fibonacci extensions above $800.

The 4-hour Relative Strength Index (RSI) reflects neutral momentum, with no clear overbought or oversold conditions, indicating that the market is awaiting a decisive breakout or breakdown. From an Elliott Wave perspective, BNB’s Wave (iv) correction appears complete on Dec. 20, and the subsequent price action should clarify the validity of this wave count.

However, failure to break above $701.3 could lead to further consolidation or a retest of lower support levels. Key levels to monitor include $657.7 (0.618 Fibonacci retracement) and $638.6, where a breakdown would invalidate the bullish scenario and suggest deeper corrective movement toward $614.1.

In summary, BNB’s immediate direction hinges on whether it can sustain momentum above $701.3, setting the stage for the next impulsive rally.

Key Levels to Watch

• Immediate Resistance: $701.3 (0.236 Fibonacci retracement of the previous impulse).
• Secondary Resistance: $794 (local high, completion of Wave (iii)).
• Major Resistance: $800 (potential Fibonacci extension target for Wave (v)).
• Immediate Support: $657.7 (0.618 Fibonacci retracement, key structural level).
• Critical Support: $638.6 (0.786 Fibonacci retracement, Wave (iv) completion zone).
• Deep Support: $614.1 (1.0 Fibonacci retracement of the corrective structure).
• Short-Term Target for Wave (v): Above $794, with potential extensions above $800 if bullish momentum sustains.
• Invalidation Zone: Below $638.6, signaling further downside and invalidation of the current bullish wave count.