Solana Price May Bounce To $88 If This Demand Zone Holds, Analyst

Solana crypto price is trading near a key support area after another sharp selloff. Market analysts are divided between a base-building bounce and a deeper wave-driven decline. With sentiment still shaky, the next reaction zone could set the tone for March.

Solana Price Forms a New “Megaphone” Structure

Trader Tardigrade said Solana crypto is forming another megaphone pattern on the weekly timeframe. His chart displays widening swings within widening trendlines. He ties it to a previous “post-megaphone” surge preceding a strong breakout.

The main takeaway is where the price sits now. Solana’s price is squeezing toward the lower boundary of that megaphone structure. That area often functions like a decision zone. A clean hold may cause a sharp rebound leg within the pattern.

Still, megaphone structures are volatile in nature. They can generate speedy bounces and equally fast failures. That is why traders want confirmation and not just a wick reaction. Follow-through is usually required to validate the setup.

SOL $76 Support Zone Anchors the Short-Term Range

Additionally, Alpha Crypto Signal claimed that SOL price is still trading within a well-defined horizontal channel on the 4-hour chart. He noted Solana price “reacted cleanly” from the lower support boundary. That response was that buyers are still defending the base.

The idea of trade, according to his framework, is simple. As long as channel support remains, Solana crypto price can rotate back to the upper boundary. The channel top becomes the immediate target if support does not fail. This helps keep the market in a range frame of mind, rather than trend-chasing.

CryptoPulse added a similar view, but with better and more apparent levels. The chart identified the $76 support zone as a strong demand zone.

It also mapped a possible bounce towards $85-$88 if support holds. That rebound zone is coincident with the previous 4H resistance shelves.

SOL Crypto Wave Levels Define the Breakdown

Meanwhile, Man of Bitcoin focused on an Elliott-style analysis. He said the important level to hold wave-4 intact was at $61.64. In his opinion, Solana price is still holding support, and hence a corrective rally is possible.

He also pointed out $68.02 as being an important level for the next leg. As long as that area remains intact, an ABC corrective move to the upside is still the likely roadmap. That does not mean that there will be a new bull trend. It is indicative of a relief rally within a more widespread correction.

His chart also shows upside retracement zones that could serve as magnets during a bounce. The region marked at around $141 – $168 appears as a higher target band in the roadmap. Those levels would likely require stronger market conditions. For now, traders are watching if the base holds first.

Bearish Positioning Raises Risk and Squeeze Odds

Positioning data adds another layer to the setup. SOL long/short ratio chart illustrated prolonged periods of negative pressure. The ratio is sitting below the neutral 1.0 area in the latest window. That implies that short interest has been dominant.

A short, heavy market can cut both ways. It can make the downside more severe if support breaks or causes a risk of a squeeze if Solana crypto price rebounds quickly.