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.
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 GlanceAs 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.
