Solana (SOL) on the Edge: Can SOL Price Rally or Is the Bearish Slide Inevitable?

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.

Solana (SOL) has been trading sideways as its price dropped to $121.31 last night before recovering 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 is still uncertain as it continues to move sideways within a critical support region.

Youtuber “More Crypto Online” has over 225k subscribers and recently posted a high-quality video on SOL’s Elliott Wave Price Technical Analysis and price update, which we would like to cover.

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Solana’s Sideways Movement, Market Sentiment

The YouTuber noted that Solana’s price has been largely stagnant, trading within a support zone but showing no clear signs of a breakout in either direction.

The sideways movement comes despite broader market pressures, particularly the uncertainty surrounding Bitcoin, which plays a crucial role in the overall cryptocurrency market dynamics.

The analyst presents three potential scenarios for Solana, with the bullish scenario taking center stage. However, the validity of this bullish setup is still up for debate and requires more evidence before any upward momentum can be confirmed.

Meanwhile, the overall bearish sentiment in the cryptocurrency market continues to put pressure on the price.

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Bitcoin’s Performance Key to Bullish Prospects

The analyst suggests that SOL’s bullish outlook has completed a wave 4 correction on August 5th. After 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 next move could determine Solana’s fate as it hovers at a crucial support level. A Bitcoin rally could positively influence Solana’s price, but there is no clear indication of such a movement as of now.

Bearish Scenario More Likely

While the bullish scenario is a possibility, the analysis seems to favor 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, the bearish scenario is likely to dominate as long as Solana remains below key resistance levels.

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Key Indicators to Watch

More Crypto Online adds that for the bullish scenario to be valid, 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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