Solana on the Edge: Can SOL Price Rally or Is the Bearish Slide Inevitable?
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Solana (SOL) has been experiencing a period of sideways movement, as its price fell to $121.31 last night before bouncing off to its current level of $127.22. SOL saw a 3.65% price loss and a 28.99% volume increase in the last 24 hours.
Solana’s price action remains uncertain as it continues to move sideways within a critical support region.
Youtuber “More Crypto Online” has over 225k subscribers; he just posted a high-quality video on SOL’s Elliott Wave Price Technical Analysis and price update, and we would like to cover it.
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Solana’s Sideways Movement and Market Sentiment
The YouTuber stated that Solana’s price has been largely stagnant, fluctuating within a support zone but showing no clear signs of a breakout in either direction.
The sideways movement has persisted despite broader market pressures, especially the uncertainty surrounding Bitcoin, which plays a crucial role in the overall cryptocurrency market dynamics.
Image Source: TradingView
The analyst outlines three potential outcomes for Solana, with the bullish scenario taking center stage. However, the validity of this bullish setup remains in question, requiring more evidence before any upward momentum can be confirmed.
Meanwhile, the overall negative sentiment in the cryptocurrency sector continues to weigh on the price.
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Show more +Bullish Prospects Tied to Bitcoin’s Performance
The analyst suggested that SOL’s bullish outlook completed a wave 4 correction on August 5th. Following this, an upward movement labeled as wave 1, coupled with a subsequent ABC correction, could pave the way for a third wave higher if the market environment improves.
For this scenario to unfold, Solana must break through key resistance levels, signaling the start of a potential rally.
Bitcoin’s role is pivotal in this equation. As Bitcoin hovers at a crucial support level, its next move could determine Solana’s fate. A Bitcoin rally could positively influence Solana’s price, but as of now, there is no clear indication of such a movement.
Bearish Scenario Remains More Likely
While the bullish scenario holds potential, the analysis leans toward a bearish outcome. The 1-2, 1-2 bearish setup, although considered, is unlikely due to the shallow first wave and lack of impulsive movement.
Instead, the more probable bearish outcome, labeled as the “blue count,” involves a wave 1 decline followed by an ABC flat correction. This scenario allows for upward movement up to $153 but maintains a bearish bias unless Solana can break above resistance.
Moreover, as long as Solana remains below key resistance levels, the bearish scenario will likely dominate.
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Key Indicators to Watch
More Crypto Online mentioned that for the bullish scenario to take hold, the market needs to see a five-wave upward move followed by a three-wave pullback.
Finally, these patterns would provide the confirmation necessary to suggest a shift in market sentiment. Until then, Solana remains at risk of further decline, with the bearish slide appearing inevitable unless market conditions change.
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