Solana, buying power explodes upon entering reversal zone... is the decline over now?

▲ Solana (SOL)

Solana (SOL) is leaving behind its recent price decline, finding stability within a specific channel, and signaling the beginning of a full-fledged recovery. As selling pressure gradually eases and buying interest flows in, market momentum appears to be shifting 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, Solana's downward momentum has slowed, opening a corrective phase that could reshape the short-term trend. The most likely scenario currently is the development of a corrective wave (2)/(B). This is likely to evolve 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 decisive breakout above the upper boundary of the currently formed diagonal pattern would provide early confirmation of a recovery. In particular, if the price surpasses key levels associated with the previous downward wave, it would be 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 the main recovery target. This zone acts as a magnet attracting prices during the corrective phase, and if upward momentum strengthens, further gains up to the 78.6% level can be expected.

Crypto analyst BitGuru noted that Solana has entered a key 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 price levels while selling pressure gradually decreases, an environment favorable for buying power to gain strength at points of concentrated demand has been created.

If Solana maintains a pattern of higher lows above its current support line, this rebound is expected to enter a structural recovery phase. For a more sustained ascent, it is necessary to form an impulse wave without falling below the previous low again. Solana is currently testing support in the reversal zone, accumulating energy for a breakout above the top of its recent trading range.

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