Solana (SOL) has been trading in a tight range between $80 and $87, triggering a squeeze in its Bollinger Bands that suggests a significant price move may be imminent. Analysts are divided on the direction, with some pointing to a bullish weekly Relative Strength Index (RSI) of 32 and others warning of potential sharp declines, with predictions ranging from a drop to $53 to a rally toward $200.
Technical analyst Ali Martinez stated that Solana’s recent price action has triggered a squeeze in the Bollinger Bands. This indicator suggests the asset may be preparing for a substantial volatility surge after a period of low movement.
Data shows SOL’s weekly Relative Strength Index recently fell to 29 and currently sits around 32. An RSI below 30 is traditionally viewed by traders as a potential buying opportunity in technical analysis.
Some market observers are optimistic about SOL’s prospects. Analyst James argued that “SOL under $90 is a ‘phenomenal offer.'”
Another analyst, OxBossman, thinks the price is more likely to hit $200 before collapsing to $40. Other traders have issued contrasting bearish warnings for the cryptocurrency.
Analyst DrBullZeus predicted the price could drop to $50, noting that “bulls are running out of time.” A trader using the handle UNKONWN TRADER also forecasted heightened volatility potentially leading to a dip to $53.
Recent on-chain data shows inflows to exchanges have outpaced outflows for SOL over several days. This netflow metric is often viewed as a bearish signal, as it can indicate investors moving assets to trading platforms for potential selling.
