Solana (SOL) continues its impressive May rally, with the leading non-EVM smart contract platform surging from $146 to $180, marking its highest daily close since February. As institutional interest in Solana grows alongside recent integrations, technical analysis suggests further upside potential.
Elliott Wave Analysis Points to $360 Target
Independent analyst More Crypto Online (MCO) has identified a compelling five-wave pattern formation that could propel SOL to new heights. The current structure shows five clean waves at what MCO terms the “nano level,” typically indicating either an impulsive first wave or a diagonal’s terminating leg.
Two key scenarios are in play:
- Primary Case: Wave 1 of a larger impulse targeting $360+
- Alternative Case: An A-wave followed by B-wave correction and C-wave continuation
Critical Price Levels to Watch
For traders managing risk exposure, two crucial price points demand attention:
- Upside Target: $191.25 (61.8% Fibonacci extension)
- Support Level: $172 (previous swing low)
Trading Implications
A decisive break above $191.25 would confirm bullish momentum, while a close below $172 could trigger a retracement to the mid-$150s. Position sizing remains crucial given Solana’s elevated volatility levels.
Frequently Asked Questions
What is the next major resistance level for Solana?
The immediate resistance stands at $191.25, representing the 61.8% Fibonacci extension of waves 1 and 3.
What support level must hold for the bullish case?
The critical support level at $172 must hold to maintain the bullish momentum toward $360.
How reliable are Elliott Wave projections?
Elliott Wave analysis is probabilistic rather than deterministic, requiring confirmation from other technical indicators and proper risk management.
At time of writing, SOL trades at $180, maintaining its position above crucial support levels as bulls eye the next major resistance zone.