SOL price has been on a wild ride lately; after hitting new all-time high at $294, Solana faced a deep correction last month and is now trading around 140. In fact, some analysts think it may drop even more.
Veteran analyst CryptoBullet has shared insights on X suggesting the SOL bull market may be over. The analysis points to a five-wave Elliott Wave impulse pattern that ended in January, followed by an anticipated correction.
According to CryptoBullet’s tweet, the Solana price surge culminated in what they describe as a “Trump Coin Blow-Off Top.” The analyst predicts a temporary rebound before a steep drop to the $30–$40 range. The chart indicates a bearish trend, with technical indicators reinforcing the possibility of continued downside pressure.
What you'll learn 👉
Elliott Wave Analysis Suggests a Bearish Trend SOL Price
The monthly chart for Solana shows a classic five-wave Elliott Wave impulse pattern, marking a strong upward movement that peaked in January. This structure consists of five distinct waves, with the final wave (5) reaching a peak before a sharp reversal. The market is now in the corrective A-B-C phase.
The price of SOL is in wave A, which has caused a steep decline. A potential relief rally, labeled as wave B, could push SOL toward the 0.5 to 0.618 Fibonacci retracement level ($200–$220). However, the bearish projection suggests that wave C could lead to a more severe drop, potentially bringing the price to $30–$40.
Solana Bearish RSI Divergence and Key Support Levels
There’s a bearish RSI divergence showing up, which means momentum is slowing down. Even though SOL hit new highs in wave (5), the RSI didn’t follow along and made a lower high instead. This suggests the upward trend is running out of steam. Looking at this divergence and current price movement, Solana price will probably keep falling.
The key resistance sits between $250 and $260, which lines up with previous highs and Fibonacci retracement levels. On the downside, the next major support is around $30-$40, which could be where this finally bottoms out if things go as expected.
Solana Price and Trading Volume Decline
Right now, SOL price is trading at $143.52, down 1.55% in the last day. Trading volume has fallen by 58.49%, showing less market activity. This drop in volume likely means fewer buyers, which adds to the bearish outlook.
CryptoBullet’s analysis warns traders about an upcoming correction and more potential downside. While we might see a small bounce soon, the overall picture looks negative based on current technical patterns.
Read Also: Here’s Why Pi Coin Price Could Surge Past $3.14 Soon
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