A key indicator suggests Solana (SOL) could be poised for a big move

One analyst believes SOL is an “amazing proposition” at $90.

Solana (SOL) has seen reduced volatility over the past few days, but the emergence of a technical signal suggests that it could show a significant move soon.

Some analysts covering assets see a rise as the more likely outcome, although others warn that a sharp decline could follow.

Major upheavals ahead?

Despite several breakouts and sharp declines, SOL has been trading in a tight range of $80 to $87 for the past few weeks. According to Ali Martinez, this price action has caused Bollinger Bands to squeeze.

This technical indicator consists of a moving average and two outer bands (one down and one up). When they tighten, it suggests that valuations may be poised for a big move, as long periods of minor volatility often follow breakouts or breakouts.

Although Bollinger Bands do not provide a clear direction, Solana’s Relative Strength Index (RSI) stands out as a bullish signal. The technical analysis tool ranges from 0 to 100 and is often used by traders to identify potential reversal points. It runs from 0 to 100, and readings below 30 are considered buying opportunities, while anything above 70 is considered bear territory. The data shows that SOL’s weekly scale RSI has recently dropped to 29, while it is currently around 32.

X users James and OxBossman are among the optimistic analysts. The former stated that SOL below $90 is a “fantastic offer”, while the latter thinks the price will first reach $200, not $40.

Bears can be very stubborn

Other famous traders, however, believe that Solana’s native cryptocurrency has not yet felt the real impact of the bear market. X user DrBullZeus predicted that the price could fall to $50, given that “bulls are running out of time”.

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UNKONWN TRADER was also pessimistic and predicted increased volatility in the coming weeks, which could drop to $53, the lowest since the end of 2023.

When speculating on the price of SOL, it is useful to observe the recent exchange rate of the asset. Over the past few days, inflows have outstripped outflows, indicating that more investors have moved their holdings to centralized platforms. This does not guarantee a price reduction, but is a mitigating factor, as such behavior often occurs before a sale.