Solana (SOL) may see a final downward move, as market analysts highlight bearish signals. Despite a mild bullish trend in the broader crypto market, experts suggest that SOL’s price correction is not yet complete. Hidden bearish divergence and key resistance rejections also point to a potential continuation of the downtrend.
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Solana Price Analysis
Veteran financial trader Matthew Dixon warned of a probable leg down for Solana and the broader crypto market.
In a recent analysis, Dixon shared a 4-hour SOL chart indicating a completed five-wave Elliott Wave pattern, followed by an ABC corrective structure. Within this correction, a triangle pattern has formed in the B-wave, typically a precursor to further downside movement.
Key Fibonacci retracement levels reveal that SOL has tested the 0.618 ($212.90) and 0.786 ($221.81) zones, encountering strong resistance.
The presence of a hidden bearish divergence on the RSI strengthens the bearish outlook. This divergence occurs when price forms a lower high while RSI records a higher high, signaling fading momentum. Dixon suggests that if this pattern follows through, SOL could decline toward the 1.618 Fibonacci extension level of $166.90 before a potential reversal.
Broader Market Trends: Sell Signals Across Major Cryptos
Other analysts echo bearish sentiment beyond Solana. Crypto market analyst Ali (@ali_charts) observed that the TD Sequential indicator is showing sell signals for several cryptocurrencies, such as BTC, XRP, SOL, and ADA.
$BTC, $XRP, $SOL, and $ADA may be set for a brief pullback, as the TD Sequential indicator is flashing sell signals on their hourly charts! pic.twitter.com/ABPwsueg6y
— Ali (@ali_charts) February 11, 2025
This indicator frequently comes before short-term reversals, bolstering the claim that SOL might experience additional decreases. As per CoinGecko, SOL is priced at $202.53, featuring a 24-hour trading volume of $4.74 billion.
The asset has experienced a 1.03% decrease in the past day and a 2.55% fall over the last week. These figures align with analysts’ warnings of a potential continuation of the corrective phase before any sustained recovery.
Read also: XRP Price Prediction For February 11
Solana’s Market Sentiment and Polymarket Predictions
Sentiment in the crypto derivatives market also leans bearish. Data from CryptoRank.io highlights Polymarket traders’ expectations for price movements in February.
The probability of Bitcoin dropping to $90,000 sits at 41%, while SOL has a 22% chance of reaching $160. In contrast, only a 9% likelihood is assigned to Ethereum (ETH) climbing to $3,500.
However, traders foresee a potential turnaround by March, with a 50% probability that Bitcoin could reach $110,000. This implies that although immediate price movements might appear bearish, a wider market rebound could occur in the upcoming months.
Top Crypto Events By Bet Volume on Polymarket
— CryptoRank.io (@CryptoRank_io) February 11, 2025
Market maintains a bearish outlook. There is a 41% chance that $BTC will drop to $90K in February, a 22% probability that $SOL will reach $160, and only a 9% likelihood that $ETH will climb to $3.5K.
However, by the end of March,… pic.twitter.com/GA1jlMgnTg
Solana’s price action remains under scrutiny as analysts point to bearish signals. These include the Elliott Wave structure, hidden bearish divergence, and sell indicators across major cryptocurrencies.
While mild bullish sentiment exists, the likelihood of a final downward move remains high. Hence, SOL’s next direction will depend on whether the projected wave C materializes, potentially pushing the asset toward the $166.90 mark before a rebound.
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