Solana Holds Above $139 Key Support Amid Wave 4 Correction

Solana (SOL) is currently navigating a critical juncture in its price trajectory, with the $139 level serving as a pivotal support zone. The digital asset is in the midst of a wave (4) correction within an ongoing Elliott Wave pattern, and holding above $139 is essential to maintain the bullish outlook and pave the way for a potential wave (5) rally.

Recent trading activity has seen Solana consolidate within a range of $143 to $139 on the 4-hour chart. This consolidation follows the completion of a wave (3) rally and aligns with the typical characteristics of a wave (4) retracement. The price has touched the 38.2% Fibonacci retracement level near $143.51 and is currently hovering above the $139.09 region, which corresponds to the 61.8% retracement level. These retracement zones are indicative of a potential exhaustion of the downward movement, suggesting that a close below $139 could lead to a deeper retracement with lower targets near $130.77 and $116.99.

If Solana manages to hold above the $139 support level, it could initiate wave (5), with Fibonacci extensions pointing to primary objectives at $155.50 (100%) and $165.40 (161.8%). These levels represent potential resistance areas during the anticipated wave (5) expansion. The current price action around $143.50 is under close scrutiny, as the defense of this level will likely determine whether Solana will resume its upward trajectory or continue its corrective phase.

Analysts have noted that the recent pullback has respected the 38.2%–61.8% retracement zones, suggesting that the wave (4) correction may be nearing completion. A confirmed rebound from the current support levels could signal the start of wave (5), with the aforementioned Fibonacci extensions serving as key targets. However, a failure to hold above $139 could shift the market sentiment towards a more bearish outlook, with lower support levels coming into play.

In summary, Solana's price action is at a critical juncture, with the $139 level serving as a make-or-break support zone. Holding above this level is crucial for maintaining the bullish Elliott Wave count and paving the way for a potential wave (5) rally. The current price action and Fibonacci retracement levels suggest that a close below $139 could lead to a deeper correction, while a rebound from the current support levels could signal the start of the next upward leg. Traders and investors are closely monitoring the situation, as the outcome will have significant implications for Solana's near-term price trajectory.