Date: Sun, June 01, 2025 | 06:26 PM GMT
The cryptocurrency market, after a strong Q2 rally that saw major tokens like Bitcoin and Ethereum climb to new quarterly highs, faced a notable pullback in late May. Solana (SOL), which had surged by over 25% to nearly $187 on May 23, retraced sharply over the past week. The altcoin dropped as low as $150—a 9% decline from its local top—before stabilizing above the $155 mark.
Source: Coinmarketcap
However, a well-known harmonic pattern forming on the chart suggests that a bounce-back may still be possible.
Bullish Cypher Harmonic Pattern in Play?
The 4-hour chart of Solana reveals a potential Bullish Cypher Harmonic Pattern taking shape—a structure often regarded as a signal for trend reversal or at least a meaningful bounce.
This specific harmonic formation began with a steep rally from point X to A, followed by a retracement to point B at the 0.584 Fibonacci level. A subsequent rally to point C (near the 1.113 extension) then led to the latest sell-off, taking price to point D, around the 1.308 extension of the XA leg.
Solana (SOL) 4H Chart/Coinsprobe (Source: Tradingview)
Now, price action near point D around $154-$155 has started to stabilize. This zone is considered the Potential Reversal Zone (PRZ) for a Cypher pattern and may act as a launchpad for a bullish move if confirmed with follow-through volume and buying momentum.
If the pattern holds, the first resistance to watch is the 0.382 Fibonacci retracement level at $164.80. A break above that could pave the way for a more extended rally toward the 0.618 Fib level at $173.52, which would imply a 9% to 12% upside from current levels.
What’s Next For SOL?
The immediate outlook for Solana hinges on how the market reacts to the $154–$150 demand zone. A sustained hold and upward break could validate the harmonic pattern and restore bullish sentiment. On the other hand, failure to defend the $150 level would invalidate the structure and possibly open the door to further downside toward $140.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research and consult with a professional before making investment decisions in cryptocurrencies.
