Solana (SOL) Starts the Year With a 11% Increase After Symmetrical Triangle Breakout

SOL Price Analysis

The primary structure shows a five-wave impulse followed by a corrective phase, with Fibonacci retracement levels overlaid to identify potential support and resistance zones.

Since reaching $264 on Nov. 22, the price of SOL has been on a downtrend, losing 34% of its value. On Dec. 23 it fell to a low of $175 and entered a consolidation phase. The daily SOL chart shows that this area around $175 was a significant horizontal support zone, previously serving as resistance.

This point also coincided with the 0.618 Fibonacci level anchored at its lower support zone of $124 to the all-time high. It is highlighted as a green box indicating zones of previous accumulation or support.

The price successfully broke above the symmetrical triangle that formed after the corrective waves WXY, suggesting a consolidation. Today the price made an 11% increase as a result of a breakout.

The immediate resistance is near the 0.382 Fibonacci level at $208, while a further break could lead to testing higher levels. Key horizontal zones coincide with prior breakout levels, adding credibility to these areas as significant support and resistance.

Wave counts suggest the completion of a corrective wave and the potential start of a new bullish impulse. The breakout from the corrective channel aligns with bullish momentum, while price hovering around the Fibonacci retracement zones indicates potential confluence. Traders will likely watch for confirmation above $208 or a retest of $173 for further moves.

SOL Price Prediction

This 1h SOL chart provides a detailed overview of its recent short-term price movements and potential Elliott Wave count. A breakout from a symmetrical triangle suggests a bullish continuation, with the price forming an impulsive move to the upside.

The wave structure hints at the development of Wave (iii), with the potential for further upward room. The Fibonacci retracement levels and horizontal zones act as significant points of interest with the first one being at 0.382 which is currently being interacted with.

However, if the momentum continues, our next likely target will be at the resistance of $230 aligning with the 0.236 Fibonacci level. Support is around $193 and $176, corresponding to the 0.5 and 0.618 Fibonacci retracement levels.

These levels are key for traders looking to assess whether the current bullish momentum will sustain or revert. After reaching $230, the projected Wave (iv) correction could serve as a slight consolidation before a continuation to Wave (v) toward higher highs.

Price action above the breakout level indicates a shift in sentiment, but the market’s reaction near $230 will be critical in confirming the next direction. If the price corrects, holding above $200 would maintain the bullish structure. Conversely, a break below $200 could invalidate the wave count, pointing to further downside, as according to the rules of the Elliott Wave Theory, wave 4 cannot enter the territory of wave 2.

But if the count gets confirmed by an immediate uptrend continuation to $230, and a higher low of $200 on the expected wave 4, SOL will likely reach values around $250 on its final high.

Key Levels to Watch

• Immediate Resistance: $230 (0.236 Fibonacci level).
• Key Support: $193 (0.5 Fibonacci retracement).
• Critical Support: $176 (0.618 Fibonacci retracement).
• Short-Term Target for Wave (v): Above $250 if momentum sustains.
• Invalidation Zone: Below $176.