Solana, Buying Spree Explodes as It Enters Reversal Zone... Is the Downturn Over Now?

▲ Solana (SOL)

Solana (SOL) is signaling the beginning of a full-fledged recovery, stabilizing within a specific channel after its recent price decline. As selling pressure gradually eases and buying interest flows in, market momentum appears to be moving towards a short-term trend reversal.

NewsBTC reported on May 1 (local time) the 1-hour wave forecast for Solana analyzed by Elliott Waves Academy. According to the analysis, as Solana's downward momentum slows, a corrective phase has opened up that could reshape the short-term trend. The most likely scenario currently is the development of corrective waves (2)/(B). This has a high probability of evolving into a double zigzag structure, which appears when the market attempts a deeper retracement, suggesting that buying forces are gradually returning to the market.

A clear break above the upper boundary of the currently formed diagonal pattern would provide early confidence in the recovery. In particular, if the price surpasses key levels associated with previous downward waves, it serves as a strong signal that selling pressure has substantially weakened. From a Fibonacci analysis perspective, the retracement zone between 50% and 61.8% of the previous decline is set as a key recovery target. This zone acts as a magnet, attracting the price during the corrective phase, and if upward momentum strengthens, further increases up to the 78.6% level can be expected.

Crypto analyst BitGuru noted that Solana has entered a major reversal zone. BitGuru diagnosed, "After the price decline, early signs of a rebound are appearing in this zone, which seems to be an attempt by the market to form a short-term bottom." As more buyers react to discounted prices while selling pressure gradually decreases, an environment conducive for buying power to gain strength at points of concentrated demand has been created.

If Solana maintains a trend of higher lows above its current support level, this rebound is expected to enter a structural recovery phase. For a more sustained rally, it is necessary to form impulse waves without falling below previous lows again. Solana is currently testing support in the reversal zone, consolidating energy for a breakout above the upper end of its recent trading range.

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