Solana Price Nears Critical Levels: Is Wave 4 Correction Over or Just Pausing?

2 days ago 4

TLDR:

Solana trades at $184.64, down 4.1% daily and 6% weekly.
Elliott Wave suggests Wave 4 may be ending near $176 support.
RSI shows bullish divergence but remains under 50.
Key levels to watch: $176, $171, and $164 for possible entry.

Solana is testing its strength. Prices dipped while traders weigh whether the recent pullback is over or if another drop comes first.

Market data shows selling pressure, but technical signs suggest a possible setup for the next move higher. Analysts are watching a few key levels that could decide what happens next. If support holds, Solana could be ready for its next push.

Solana Elliott Wave Count Suggests Key Turning Point

Veteran trader Matthew Dixon shared his view on Solana’s current price structure using Elliott Wave Theory.

He pointed out that the token may have completed Wave 4, or it could still slide toward the ideal correction zone. The 4-hour chart aligns with this view, showing a clear five-wave structure with Wave 5 yet to unfold.

#SOL MAY have finished the wave 4 correction
OR
We may have further to go in this correction (ideally) to the 100% extension.

IF we reach that level, then personally I will be "grabbing it with both hands" – (but never all in btw)

EXCITING TIMES 🚀 pic.twitter.com/VWd9oEcjKm

— Matthew Dixon – Veteran Financial Trader (@mdtrade) July 29, 2025

Fibonacci levels are central to this setup. Solana has already tested the 0.618 retracement near $176. This level could mark the bottom of Wave 4 if buyers step in.

If Solana holds above $176 and $171, the bullish case stays intact. A drop to the 100 percent Fibonacci extension near $164 would become the next major area to watch. Dixon noted that this would be his preferred entry zone.

Traders are also watching the 0.382 retracement around $183. A break above it could clear the way toward $185 and potentially start Wave 5.

SOL Price Momentum and Market Context

The Relative Strength Index shows a bullish divergence, hinting that selling pressure may be fading. Still, RSI sits under 50, suggesting neutral momentum. The next move depends on whether Solana holds its support or dips into the deeper correction zone.

According to CoinGecko, Solana trades at $184.64 after a 4.10 percent daily drop and nearly 6 percent weekly slide.

The next few sessions will be critical. A bounce from support could set up the next leg higher. A failure to hold may open the door to $164 before any recovery attempt.