Solana is a high-performance blockchain platform designed for decentralized applications and cryptocurrencies, known for its fast transaction speeds and relatively low transaction costs compared to many other blockchain networks. If technical support holds, Solana could remain well-positioned for a continuation of the broader long-term uptrend.
Solana (SOLUSD) is currently sitting at strong support for wave C of a larger ABC correction within wave (4) on the daily chart. According to Elliott Wave theory, markets typically move in impulsive five-wave trends followed by corrective three-wave patterns labeled A–B–C. Wave (4) corrections often retrace a portion of wave (3) before the final wave (5) advance begins. In this case, wave C may be approaching completion near a key support zone.
SOLUSD Daily Chart
A recovery above the 117 level would be needed to confirm that support is holding and that a bullish reversal is underway, potentially opening the door for the next impulsive move higher.
Basic Rules and Guidelines for ABC Corrections
Corrective waves in Elliott Wave theory typically unfold in three-wave structures labeled A–B–C and move against the direction of the main trend. The two most common corrective patterns are Zig-Zag corrections and Flat corrections.
ABC Zig-Zag Correction
A zig-zag correction is a sharp corrective structure that usually develops in a 5–3–5 wave sequence:
Wave A unfolds in five waves (impulse or diagonal).
Wave B unfolds in three waves and typically retraces 38.2%–61.8% of wave A.
Wave C unfolds in five waves and is often similar in length to wave A.
Zig-zags usually appear during strong trends and indicate only a temporary correction.
Wave C often extends slightly beyond the end of wave A.
Key characteristic: Sharp and directional correction.
ABC Flat Correction
A flat correction is a sideways corrective structure that usually develops in a 3–3–5 wave sequence:
Wave A unfolds in three waves.
Wave B unfolds in three waves and typically retraces 90% or more of wave A.
Wave C unfolds in five waves.
Wave B may move slightly above the start of wave A in expanded flats.
Wave C often terminates near or slightly beyond the end of wave A.
Key characteristic: Sideways and overlapping price action.
General Guidelines
ABC corrections usually appear as wave (2), wave (4), or wave B in larger structures.
Wave C is normally the strongest and most directional wave within the correction.
Support or resistance levels often form near the end of wave C.
A completed ABC correction is often followed by a continuation of the main trend.
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