Solana Bounces at Channel Support: Is the Low In?

AI-generated source summary

The analysis focuses on SOLUSDT, currently trading at $105.79. The long-term outlook suggests a bullish trend within an ascending channel, with the price recently testing and finding support at the lower boundary. The analysis indicates that the price has completed a five-wave impulse sequence (1-2-3-4-5) and is now potentially in a corrective phase (A-B-C). A significant support zone is identified between $89.57 and $96.89, corresponding to the 50% and 38.2% Fibonacci retracement levels from a prior significant upward move. The immediate target for a potential upward move is seen near the upper boundary of the channel, possibly around $133.00, with a short-term target near the $118.00 resistance area. The fail bound for the bullish scenario is set below the identified support zone, potentially around $90.00, which would invalidate the immediate upward trajectory and suggest a deeper correction or continuation of the downtrend. The price action on lower timeframes shows a brief pullback, but the overall structure on the daily chart remains bullish as long as the support zone holds. The analysis also briefly touches on the SOL/BTC pair, noting a bearish trend in a descending channel, implying that SOL is underperforming Bitcoin, which is seen as a potential signal for further downside for SOL against BTC.

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