The Solana price had a mixed performance over the past week, initially rising toward $90 before falling back to just above $85. According to a popular analyst on X, the altcoin is currently trading in an interesting zone, which could set the stage for a big price move.
SOL Price Currently Within No-Trade Zone
In an April 24 post on the social media platform X, crypto pundit Ali Martinez hypothesized that the Solana price is ready for a significant move from its current point. According to the market analyst, the price of SOL appears to already be building bullish momentum that would fuel its next significant rally.
The rationale for this price outlook is the contraction of the Bollinger Bands on the Solana three-day price chart. Typically, the Bollinger Bands are a technical analysis indicator used to evaluate market volatility and identify overbought or oversold conditions.
For instance, the Bollinger Bands often experience a “squeeze” (as seen in the highlighted Solana price chart) or contraction during low-volatility periods, typically preceding a sharp price breakout. As shown in the chart below, the indicator on the SOL 3-day chart is forming a tight range between $77 and $94.
Martinez noted that this Bollinger Band squeeze on the high timeframe could serve as a “coiled spring.” Comparing the indicator’s recent contraction to the mechanics of a coiled spring, the market analyst said that the longer the Solana price stays within the $77-$94 range, the greater the momentum it builds toward an eventual breakout.
While this optimistic outlook suggests a potential buying opportunity for investors, Martinez fired what seemed like a warning against taking a position around the current price region. According to the crypto analyst, the $77-$94 represents a “no-trade zone” for the Solana price.
Martinez wrote on X:
Chasing candles inside this consolidation often leads to being chopped up. Instead, we are looking for a clean 3-day candle close outside the bands that could trigger a volatility spike.
Ultimately, the Solana price seems poised for a major upward move over the coming months. Nevertheless, investors might want to exercise some patience when positioning for the next SOL move.
Solana Price At A Glance
As of this writing, the price of SOL stands at around $86.26, reflecting a mere 0.2% jump in the past 24 hours. According to CoinGecko data, the altcoin is down nearly 3% over the last 7 days.
