Fasten Your Belts: Key Indicator Suggests Solana (SOL) May be Ready for a Big Move

Solana (SOL) has seen reduced volatility over the past several days, but the emergence of a certain technical signal suggests it may soon chart a substantial move.

Some analysts who touched upon the asset see an upswing as the more likely outcome, though others warn that a sharp decline could follow.

Major Turbulence Ahead?

Despite some sporadic spikes and dips, SOL has been trading in a tight range between $80 and $87 over the past weeks. According to Ali Martinez, this price action has triggered a squeeze in the Bollinger Bands.

This technical indicator consists of a moving average and two outer bands (one lower and one upper). When they tighten, it suggests the valuation might be gearing up for a huge move, as long periods of slight volatility are often followed by breakouts or breakdowns.

Although the Bollinger Bands don’t offer a clear direction, Solana’s Relative Strength Index (RSI) stands out as a distinctly bullish signal. The technical analysis tool ranges from 0 to 100 and is often used by traders to spot potential reversal points. It runs from 0 to 100, with readings below 30 considered buying opportunities, while anything above 70 is seen as bearish territory. Data shows that SOL’s RSI on a weekly scale recently fell to 29, while currently it stands at around 32.

SOL RSI, Source: Crypto Waves

X users James and OxBossman are among the optimistic analysts. The former argued that SOL under $90 is a “phenomenal offer,” while the latter thinks that the price would first hit $200 rather than collapse to $40.

The Bears Could be Quite Stubborn

Other popular traders, though, believe Solana’s native cryptocurrency has yet to feel the real impact of the current bear market. X user DrBullZeus predicted that the price could dip to as low as $50, assuming that “bulls are running out of time.”

UNKONWN TRADER was also pessimistic, forecasting heightened volatility in the coming weeks that might lead to a drop to $53, the lowest since the end of 2023.

When speculating on SOL’s price, it is useful to observe the asset’s recent exchange netflow. Over the past several days, inflows have outpaced outflows, indicating that more investors have been moving their holdings to centralized platforms. This doesn’t guarantee a price collapse but is a bearish factor since such behavior often precedes selling.

SOL Exchange Netflow, Source: CoinGlass

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