The conclusion of our previous article about Solana, published on June 5th, was that the cryptocurrency “can be expected to drop to $130, before the bulls get another shot at $200.” Solana was trading near $153 at the time. On June 22nd, it fell to $126. Two months later now, it is hovering a few dollars above the $200 mark. The Elliott Wave chart below was everything we needed to make that prediction in early-June.
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It revealed a five-wave impulse pattern to the upside, marked (1)-(2)-(3)-(4)-(5), where the sub-waves of (1) and (3) were also visible. According to the Elliott Wave theory, a three-wave correction should follow before the uptrend can continue. Wave (a) was in place already, so we figured that waves (b) up and (c) down can be expected to drag Solana to the 61.8% Fibonacci support level, before the bulls return. This is more or less precisely how the situation unfolded.
Wave (b) developed as a triangle correction, labeled a-b-c-d-e, before wave (c) completed the negative phase of the cycle just under the 61.8% Fibonacci support. The following recovery to $210 so far looks like an ending diagonal, marked (1)-(2)-(3)-(4)-(5), indicating that this entire structure is a simple A-B-C zigzag. If this count is correct, we can expect one last new high in wave (5) near $215, before the bears return.
Once a correction is over, the preceding trend resumes. Since this A-B-C recovery was preceded by a sharp 200-dollar selloff from $295 to $95, downside targets near $80 make sense for Solana in the months ahead. From the current price that’ll be a decline of roughly 60% – something the bulls won’t like.
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