Solana (SOL) Eyes Breakout: Can Bulls Push Price Toward $330?

Solana’s price action is at a critical juncture, forming a potential bottom after a corrective phase. The 4-hour chart highlights a descending wedge pattern, while the 1-hour chart suggests an imminent breakout. Fibonacci levels and Elliott Wave structures indicate that SOL could be preparing for a significant move if resistance levels are cleared.

SOL Price Analysis

Solana has been in a corrective phase following its five-wave impulsive rally, which peaked at $294 on Dec. 19. The price has since formed a descending wedge, a structure often associated with bullish reversals. The correction followed an ABC pattern, where wave C appears to have found a potential bottom around $222, in between the 0.618 and the 0.6 Fibonacci retracement levels.

The Relative Strength Index (RSI) on the 4-hour chart recently touched oversold territory, suggesting that selling pressure has weakened. Additionally, a bullish divergence is forming, supporting the possibility of an upward reversal. The next key resistance levels lie at $246 (0.382 Fibonacci retracement) and $264 (0.236 Fibonacci retracement), with a major breakout target at $294 – its prior macro high. 

A sustained move above $246 indicates buyers are regaining control, confirming the wedge breakout. However, failure to break above this level could lead to further consolidation or even a deeper pullback toward $216 (0.618 Fibonacci retracement).

Overall, the broader trend remains bullish, provided SOL maintains its higher timeframe structure. The current retracement appears to be a healthy correction within a larger uptrend. The critical confirmation for bullish continuation will be the breakout above the wedge resistance, accompanied by increasing volume.

SOL Price Prediction 

The 1-hour chart provides insight into SOL’s short-term movements. There are two scenarios is play and soon we are going to see which one is primary. Either the price confirmed a completed corrective sequence within the descending wedge on the Jan 27 low or still has another for a proper interaction with the 0.618 Fib. 

In the first scenario, the corrective count amounts to the WXY pattern with its last downtrend being a lower-degree three-wave correction. Alternatively, the near 9% rise since Jan 27 is wave (iv), leading to a final low for its wave (v). 

The final sub-wave (v) within wave C has aligned with a key support level near $216 at the 0.618 Fib suggesting that buyers may step in for a potential breakout, after another rest of the descending wedge support. 

A breakout from the wedge could initiate a strong rally toward Fibonacci extension levels. The first resistance to watch is $246, where a decisive move above this level could drive SOL to $264 and $294. Beyond this, the 1.618 Fibonacci extension projects a potential target near $330 if momentum sustains.

The RSI on the 1-hour chart has formed a clear bullish divergence, further reinforcing the likelihood of a reversal. Historically, such divergences often lead to strong price rebounds, particularly when combined with falling wedge breakouts.

If SOL fails to sustain above $231, a retest of the $216 support (0.618 Fibonacci retracement) is likely. However, a breakdown below this level would weaken the bullish outlook, with $195 (0.786 Fibonacci retracement) acting as the last major support before invalidation.

Key Levels to Watch

• Immediate Resistance: $246 (0.382 Fibonacci level)
• Key Resistance: $264 (0.236 Fibonacci retracement)
• Major Resistance: $294 (prior high)
• Immediate Support: $231 (0.5 Fibonacci retracement)
• Key Support: $216 (0.618 Fibonacci retracement)
• Critical Support: $195 (0.786 Fibonacci retracement)
• Short-Term Target: $330 (1.618 Fibonacci extension) if momentum sustains
• Invalidation Zone: Below $195