Wave C is gaining momentum as Solana forms its first clean 5-wave impulse in days, hinting at a trend shift. A breakout above $131.50 is crucial for confirming a reversal toward the $150+ zone. Accumulation spikes and ecosystem strength bolster bullish potential despite macro pressure.
In the volatile world of cryptocurrency trading, Solana ($SOL) continues to captivate investors with its high-speed blockchain prowess and meme coin ecosystem. As Bitcoin stabilizes above $90,000, altcoins like Solana are showing early signs of decoupling, potentially setting the stage for a broader rally. Recent technical analysis from veteran trader More Crypto Online highlights a textbook Elliott Wave development that could propel $SOL out of its recent correction.
$SOL
Wave C is following the script and is developing really nicely. $133 – $136.90 is micro support. https://t.co/va6fF0QlUH pic.twitter.com/h0heYTBwCX— More Crypto Online (@Morecryptoonl) December 2, 2025
Why the $131.50 Level Matters
Drawing from the principles of Elliott Wave Theory, which posits that market prices unfold in repetitive five-wave advances followed by three-wave corrections, Solana’s chart on the Binance SOL/USD pair reveals a compelling narrative. The latest update points to Wave C of a corrective ABC pattern gaining momentum. After dipping to lows around $131 earlier this week, $SOL has clawed back to hover near $133-$136.90, forming a critical micro support zone. This aligns with the first clear five-wave impulse from yesterday’s bottom, suggesting buyers are regaining control.
Ecosystem Momentum Supports the Bullish Case
The annotated TradingView chart underscores this optimism. Key resistance at $131.50 remains the immediate hurdle—if breached decisively, it could invalidate the correction and open doors to higher targets. Visually, the price action traces a descending channel from November highs, with Wave C probing the lower boundary. Support levels cluster around 61.8% Fibonacci retracements ($133.60) and prior swing lows ($136.90), while upside projections eye $150+ if momentum builds. Notably, the Relative Strength Index (RSI) on the 4-hour timeframe is rebounding from oversold territory, flashing divergence that often precedes reversals. Solana’s fundamentals bolster this technical setup. With transaction speeds rivaling traditional finance and a thriving DeFi sector—home to protocols like Jupiter and Raydium—the network processed over 1,000 TPS last month.
Trading Strategy: Breakout or Breakdown?
Institutional interest is surging too, with ETF filings and partnerships amplifying adoption. Yet, risks linger: macroeconomic headwinds like Fed rate decisions could cap gains, and on-chain metrics show whale accumulation slowing slightly. For traders, this Wave C progression is a script straight out of Elliott’s playbook—precise, predictive, and profitable if navigated wisely. Position sizing near supports with stops below $130 is prudent, while long-term holders might view dips as accumulation opportunities. As $SOL dances on the edge of reversal, the crypto market watches closely: will this be the spark for altseason 2.0?