Solana (SOL) Price Drops—But Is a Reversal Toward a New ATH Coming Next?

Solana’s price has fallen lately as part of a broader crypto market correction. Despite this dip, trader Matthew Dixon still maintains a positive outlook.

Solana’s price has declined as part of a broader crypto market correction. Despite this dip, trader Matthew Dixon still maintains a positive outlook. His analysis suggests the current downturn is a temporary correction before a potential bullish reversal.

Technical indicators point to a possible bottoming phase. Dixon’s latest tweets indicate that SOL may soon resume its upward trajectory.

Dixon’s analysis of Solana’s price movement highlights a double correction pattern, also known as a W-X-Y formation. According to his assessment, the final Y wave of this structure aligns with a textbook A=C relationship. This suggests that the correction is nearing completion.

The two FIB measurements detailed here on #SOL show a perfect a=c relationship for the final Y wave down of the double correction.

This is very supportive of the view that this is JUST an extended correction to be followed by yet another $SOL ATH pic.twitter.com/7y9rl4yIUd

His chart shows that after peaking at Wave 3, Solana entered a complex Wave 4 correction. A triangle formation appeared at the peak of Wave B before further declines followed. Based on Fibonacci retracement levels, the support zone between $133.80 and $144.24 is critical. If this range holds, a bullish reversal could be imminent.

Key SOL Fibonacci Levels and Market Reaction

Dixon’s chart identifies Fibonacci retracement levels as essential markers for Solana’s price action. Key support exists at the 1.382 Fibonacci extension ($144.24) and the 1.618 level ($133.80).

With SOL price now trading within these markers, Dixon believes these zones might serve as the springboard for the next upward move. If the price holds, it may trigger an impulsive wave toward a new all-time high.

Read also: Is Bittensor (TAO) Price About to Go Parabolic? Here’s What the Experts Are Saying

Technical indicators further support the potential reversal. Solana’s RSI has dropped to 34.96, approaching oversold conditions. Historically, such levels have preceded market bottoms. Dixon interprets this as another bullish signal, reinforcing his view that a turnaround is likely.

In a later tweet, he doubled down on his position, noting that Solana’s current dip is still within predicted ranges. He maintained that despite the pullback, the overall bullish pattern remains intact, suggesting an upward trend should commence shortly.

This is STILL a corrective count lower for #SOL meaning we will still push to new ATH with the turn higher likely beginning today

The correction was not a simple ABC as initially thought but is a double correction WXY format.

Great long $SOL & #Crypto opportunities from here imo pic.twitter.com/IDRPSw6iH3

Solana Market Overview and Future Outlook

Solana is currently changing hands at $140.45, per CoinGecko data. The token has shed 12.20% in the last 24 hours and is down 18.45% over the past week, underscoring the continuing market correction.

Despite the downturn, Dixon maintains that SOL remains on track for a potential all-time high. If the correction follows the expected pattern, buyers may soon re-enter the market, driving the next major rally.

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