TLDR:
- Solana has corrected 77% from the $295 peak, mirroring previous cycle retracement patterns.
- The $31-$48 zone corresponds to Fibonacci levels of 0.5 and 0.618 and the FVG demand.
- A breakdown below $31 could reveal a deeper retracement towards the $17 region.
- Fractal equation projects long-term goals between $500 and $1,000 if the cycle repeats.
Solana’s weekly chart shows a deep retracement from the all-time high, with the price now trading near critical Fibonacci levels.
Market observers are eyeing the $30 to $50 range as a possible accumulation zone ahead of the next cycle.
Fractal structure and historical price cycles
The weekly SOL/USDT perpetual chart on Binance follows two major bull cycles, followed by sharp corrections. During the first cycle, Solana rose from $1.07 to around $260 between 2020 and 2021. That move represented a gain of more than 24,000%.
After this increase, the price corrected almost 97% to around $7.78. The second cycle followed a similar pattern. Solana climbed from $7.78 to around $295, posting a gain of almost 3,700%. The country then entered another lengthy correction phase.
Crypto market analyst Crypto Patel shared a fractal equation on X, noting the current 77% drop from all-time high. The post compared the current structure to the deep retracement of the previous cycle.
The tweet emphasized that past fractals are not a guarantee of future results and urged traders to manage risks.
At the time of analysis it was SOL is trading near $83. The chart shows that previous parabolic developments followed long-term consolidation phases. This repeating structure forms the basis of the current long-term vision.
Fibonacci levels and accumulation zone in focus
The chart shows the key Fibonacci retracement levels, based on the recent high of $295. The 0.382 level is at $73.66, while the 0.5 level is near $47.96. The 0.618 level is around $31.22, reflecting strong demand.
A Fair Value Gap zone is identified between $31 and $48. This range overlaps with the 0.5 and 0.618 retracement levels. Traders often consider such a confluence as a potential accumulation area during correction phases.
If the price remains above the 0.618 level, consolidation within this band may continue. However, a break below $31 could open the path to a 0.786 retracement near $16.95. That level represents a deeper correction scenario.
The expected path on the chart outlines a possible recovery towards $100 and $150 in the medium term. Over a longer horizon, the fractal equation points to potential targets between $500 and $1,000. These projections are based on historical cycle behavior rather than guarantees.
For now, market participants are keeping an eye on whether Solana stabilizes within the $30-$50 range. The upcoming weekly closes could determine whether the current structure transitions into a base for the next upward cycle.
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