Solana Pulls Back After Testing $110 Key Resistance: Support Levels and Wave Structure Analysis

Solana's price pulled back yesterday after touching the key resistance at $110, which was previously identified as the primary upside target. This article combines daily and lower timeframe charts to outline current support levels, wave structure, and key points to watch going forward.

1. Pressure at the $110 Resistance, Pullback Expected

On the daily timeframe, the $110 level had been marked earlier as the primary resistance, and the price showed some selling reaction upon reaching it. From a technical perspective, this resistance is not particularly strong, but a brief pause at this level is in line with expectations.

The upward wave that started on August 1 has formed a fairly extended third wave, and the need for a fourth wave correction is building. The key now is whether the price can hold the support below to maintain the bullish structure.

2. Key Support Zones and Potential Targets

Lower timeframe charts show that during the pullback, the price has entered the support zone mentioned in yesterday's video, located between $102.57 and $104.16 (the figures 1257 and 16.76 in the original text appear to be typos and have been corrected to 102.57-104.16 based on context). This zone is a minor support; breaking below it does not alter the overall structure.

If the price drops further, watch the support levels at $102.57 and $104.2 (the figures 10,257 and 1042 in the original text should be 102.57 and 104.2). A more critical support is at $94.97, the swing low from August 26. If that level is broken, the market will exit the sequence of higher highs and higher lows, and the microstructure will need to be reassessed.

If the price successfully breaks above $110 later (for example, next week), the upside target can be seen in the $132-133 area.

3. Wave Structure: Still a Three-Wave Corrective Pattern

The entire upward wave from the June low currently shows only a three-wave structure, not an impulse wave, so it is more likely to be a diagonal pattern. This means each sub-wave is a three-wave structure: wave 1, wave 2, and wave 3 are all ABC corrections, and only after that could waves 4 and 5 appear.

If the market follows the orange path (i.e., forms a five-wave advance), more bullish momentum is needed. No support has been broken yet, so in the short term, we can still watch whether the price can continue higher along the most direct path.

4. Key Points to Watch

• Primary focus: whether the minor support zone at $102.57-$104.16 can hold.
• Secondary supports: $102.57 and $104.2.
• Critical line: $94.97 (August 26 low).
• Upside resistance: $110; a break above targets $132-133.

The price is currently testing the minor support zone for the first time, and whether the market can stabilize here and launch the next leg up remains to be seen. With the potential completion of the fifth wave, the overall structure is approaching a near-term top area, but momentum is still tilted upward. Intraday focus will be on the performance of the support levels mentioned above.