Solana’s Weird Wave 4 Formation In The past couple months..what is it?
### Solana ($SOL) Bouncing off Resistance in a Weird Formation
Solana ($SOL) has experienced a significant upward trajectory since its inception, particularly marked by a notable Wave 3 rally from $50 to $197. This impressive move was part of a larger Elliott Wave pattern, but what has followed is a complex and somewhat unusual Wave 4 formation that has confounded many analysts and traders.
#### The Wave 3 Rally
To begin with, Solana’s Wave 3 was a textbook example of a powerful impulsive move in Elliott Wave theory. Wave 3s are typically the longest and most dynamic waves in the five-wave sequence, characterized by strong bullish sentiment and increased trading volume. For Solana, this wave saw prices surge from $50 to an all-time high of $197. This rally solidified Solana’s position as a leading cryptocurrency and brought significant attention from both retail and institutional investors.
#### The Unusual Wave 4 Formation
Following the Wave 3 peak, Solana entered a corrective Wave 4 phase, which has proven to be anything but straightforward. Typically, Wave 4s are marked by a clear corrective pattern, such as a zigzag, flat, or triangle. However, Solana’s Wave 4 has manifested in what can be described as a “weird formation.”
I usually avoid terms like “double top” or “triple top” because they often oversimplify complex wave structures, but in this instance, the pattern on Solana’s chart can indeed be seen as a clear triple top formation. This rare occurrence in Wave 4 adds a layer of complexity to the typical Elliott Wave analysis. The resistance encountered at the $150-$160 range has been tested multiple times, creating what appears to be a triple top — a pattern that typically indicates strong resistance and potential for a bearish reversal if not broken.
#### Key Support and Resistance Levels
In this corrective phase, the $112 level has emerged as a major A wave support. This level is crucial for the integrity of the Wave 4 structure. A break below $112 could signal further downside, possibly extending the correction beyond typical Wave 4 parameters and into a more prolonged bearish phase.
Conversely, a reversal from the $112 support level and a subsequent breakout above the $150-$160 resistance zone would be highly bullish. This move would signal the completion of Wave 4 and the beginning of Wave 5.
#### Potential for Wave 5
Assuming $112 holds and Solana manages to break above the $150-$160 resistance, Wave 5 could be on the horizon. Wave 5s in Elliott Wave theory are typically less dynamic than Wave 3s but still represent a significant bullish move, often fueled by the final burst of investor enthusiasm.
For Solana, the Wave 5 target could be substantial. Based on Fibonacci extensions and previous price action, a Wave 5 move could potentially push Solana’s price to $250 or higher. This would mark a new all-time high and further establish Solana as a key player in the cryptocurrency market.
#### Conclusion
Solana’s current price action is a fascinating study in Elliott Wave theory. The unusual Wave 4 formation, marked by a triple top, sets up a critical juncture for the cryptocurrency. Key support at $112 needs to hold, and a breakout above $150-$160 would signal the start of Wave 5, with targets potentially reaching $250+. Traders and investors should watch these levels closely as Solana navigates this complex corrective phase and gears up for its next major move.
