The cryptocurrency Solana (SOL) shows signs of nearing the end of its correction phase. Technical indicators suggest a bullish breakout above the $216 level.
Completion of SOL Correction
Solana (SOL) is showing strong signs that its recent correction phase may be wrapping up. According to technical analysts tracking the 1-day chart, the asset appears to be finishing Wave 4 of the Elliott Wave pattern, typically followed by a sharp upward move known as Wave 5.
This phase of consolidation, which saw SOL retrace from recent highs, is characterized by weakening bearish momentum and bullish patterns forming near key support levels. The Relative Strength Index (RSI) has bounced off neutral zones, signaling that buyers are beginning to step back in.
Target Zone: $220-$250
With indicators flashing bullish signals, experts anticipate the next move could send SOL to the $220-$250 zone. This projection aligns with common Fibonacci extension levels and historical resistance zones.
One of the critical levels to watch is $216–$217. A decisive breakout above this resistance, especially with increasing volume, would confirm the transition from the correction to the next bullish impulse wave.
Past patterns also support this bullish scenario. SOL has a history of making strong recoveries after correction phases, often rallying quickly once a technical breakout is confirmed.
What's Next?
Traders should keep a close eye on the $216 resistance zone. A daily close above this level, backed by strong volume, could mark the beginning of a new rally. RSI trends and MACD crossovers will also be key confirmation tools.
If the current bullish setup holds, SOL may rally toward $225, then test higher levels at $231 and potentially $250. However, a failure to break $216 might lead to continued sideways movement before a new leg up.
Current technical indicators for Solana (SOL) strongly suggest the potential for new bullish trends, with key resistance levels and trading volumes being important factors to watch.
