Solana Market Structure Warns Of More Downside Despite Oversold Conditions

Solana’s price action continues to flash caution signals, even as momentum indicators suggest oversold conditions. The broader market structure remains tilted to the downside, with bearish waves still unfolding and key support levels under pressure. Until a clear shift in structure and a strong bullish impulse emerge, the risk of further downside remains firmly on the table. 

Bearish Structure Dominates Solana On Lower Timeframe

In the current follow-up wave outlook for Solana on the 1-hour timeframe, Elliott Waves Academy highlights that bearish control remains firmly intact. The price has already experienced a strong impulsive decline, marking the first leg of a broader downward trend. This move is likely unfolding as waves 3–5 within wave (1)/(A), suggesting that the market is still in the early stages of a larger bearish cycle.

At this stage, price is approaching the 100% extension of the prior wave, aligning with a key support level of $78.33. This zone is technically significant and could act as a temporary reaction point where buyers attempt to slow down the decline or trigger a short-term bounce. If the market fails to produce a convincing reversal at this support, the bearish structure is expected to extend further through the sub-waves of wave 5, reinforcing sustained selling pressure in the medium term.

Source: Chart from Elliott Waves Academy on X

From a short-term perspective, a wave 2 corrective rebound may develop before the next leg down. This bounce could take the form of a sharp, channeled recovery, often seen in counter-trend moves. However, any breakdown below key support during or after this correction would confirm that the broader bearish trend remains dominant, making it essential to monitor price action and structure at these levels closely.