SOL Wave (2) Ending? Only a $125.50 Break Confirms It

 Key Insights:

• SOL remains range-bound as analysts await a decisive break above $125.50 for trend confirmation.
• Liquidity clusters near $130 and $115 suggest consolidation rather than strong directional momentum for now.
• The $120 support level continues holding firm, keeping Solana’s broader corrective structure intact.

Solana (SOL) continues to trade near a closely watched technical zone as market participants assess whether a corrective phase is nearing completion. Recent price action shows stabilization, but analysts remain cautious due to the lack of confirmation from key resistance and volume signals.

SOL was trading near $122 after posting mild daily losses and extending its weekly decline. Price remains range-bound, with traders focusing on nearby support, resistance, and liquidity levels to gauge the next directional move.

Corrective Structure Forms Near Key Support Zone

Market analysts tracking SOL’s daily structure point to a possible completion of Wave C within a broader Wave (2) correction. Price recently tested the $118–$121 area, which aligns with a common Fibonacci support zone used to identify potential corrective lows.

This zone has attracted buyers before, and the latest reaction suggests selling pressure may be slowing. However, analysts stress that structure alone does not confirm a trend shift. SOL remains below a downward trendline that has guided prices lower in recent weeks.

Until price clears overhead resistance, the market remains in a corrective state. Analysts describe the current setup as unfinished rather than confirmed.

$125.50 Stands as the Confirmation Barrier

The $125.50 level remains the main level to watch. It aligns with horizontal resistance and caps recent rebound attempts. Analysts state that bulls must break and hold above this area to validate any claim that Wave (2) has ended.

Recent price bounces failed below this level, and trading volume during those moves stayed low. Analysts warned that upside moves without volume lack credibility and may reflect short-term reactions rather than sustained buying.

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Liquidity Zones Define the Current Range

Liquidity data shows SOL trading between two clear clusters. On the upside, liquidity is concentrated near $130. On the downside, a similar cluster sits near $115. These zones often attract prices during periods of low conviction.

Price continues to rotate between these levels, suggesting balance rather than trend. Analysts note that moves toward either side may occur through liquidity sweeps instead of steady momentum.

As long as price remains between these zones, consolidation remains the dominant structure.

$120 Continues to Act as Long-Term Support

The $120 level remains a key structural floor on the daily chart. Price has respected this zone since late 2023, with repeated reactions confirming strong demand.

Recent candles show price holding above this area, indicating absorption rather than aggressive selling. Analysts note that a daily close below $120 would change the broader structure, while continued defense keeps the current range intact.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.