The Trust Layer for Market Analysts

Solana is currently in a sideways range, following a corrective action after topping on January 14th. The primary thesis indicates a three-wave decline has occurred, potentially leading to one more low. This final leg down could either complete an ABC correction as a wave 5, or form an E-wave within a larger triangle pattern. The immediate expectation is a further dip towards the 78.6% to 88.7% Fibonacci retracement levels, specifically targeting the $120-$122 range. Following this potential lower low, a larger B-wave bounce is anticipated, which should not break above the upper resistance area between $138.60 and $142.70. A break above the micro resistance (around $132) and a yellow trendline could indicate an earlier start to the B-wave, potentially invalidating the immediate expectation of one more low.