A top cryptocurrency analyst on Wednesday flagged imminent volatility for Solana (CRYPTO: SOL), as the seventh-largest cryptocurrency battles a month-long sideways movement.
Upward Breakout Or Downside Breakdown?
Ali Martinez took to X, highlighting a Bollinger Bands squeeze roughly between $81 and $92. They interpreted it as a sign of an incoming “major price move.”
The Bollinger Band Squeeze occurs when the volatility drops, causing the space between the bands to tighten. When the price closes outside of bands, traders consider it a potential new breakout. This strategy is used to identify the start of new trends after periods of consolidation.