Back on September 28, we discussed how Solana's five-wave impulse on the daily chart could offer another bullish opportunity after a wave 4 pullback. Our initial analysis highlighted the $110–$95 support zone as an important area to watch. Read the original analysis here.
Since then, SOL has progressed further, completing wave (5) of 3 on the 4-hour chart and entering a higher-degree wave 4 correction. Price is now testing the 38.2% Fibonacci retracement and the upper line of the base channel around the psychological $100 level, which could act as the first ideal support.
However, the sharp decline from the highs may represent an impulse within wave (A), suggesting that wave 4 could unfold as a three-wave ABC correction. In this scenario, the broader $100–$95 zone becomes an important support area from which a bullish resumption within wave 5 could develop.
For now, we should watch for a temporary recovery within wave (B) toward the $113 resistance level before a potential additional decline within wave (C). The reaction around these key levels should help us assess whether SOL is preparing for the next bullish leg.
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