- Solana’s Bollinger Bands on the 4-hour chart are tightening, indicating that a move in price would be imminent.
- The technicals are pointing to building bullish momentum in the short to medium term.
- SOL is currently trading at $147.38 with a 0.71% gain on the day, indicating buying pressure is building.
Cryptocurrency traders are closely monitoring Solana’s (SOL) price for a possible upward movement in price. A recent analysis shared by crypto chart expert Ali revealed that the crypto’s Bollinger bands on the 4-hour timeframe are “tightening” at the moment.
This tightening usually precedes the start of a price rise. The Bollinger bands consist of three lines plotted on a price chart. It has a middle, upper, and lower band.
The wider the bands, the greater the price fluctuation for an asset. If the area between such bands is small, prices will remain steady. The Bollinger band squeeze occurs when both the upper and lower bands move toward the middle and has generally predicted a huge price movement.
Source: X (@ali_charts)
Bollinger Bands Suggest Solana’s Price Is Likely to Alter
Ali’s chart shows Bollinger Bands, which signal price action, tightening. This narrowing reveals that SOL’s price stayed within a small range and might be gearing up to make a bigger move soon.
However, one can note that the Bollinger bands do not indicate whether the price would break out in the direction of an uptrend or a downtrend. Hence, other indicators are usually employed to confirm the direction of the breakout.
Technicals Show Growing Bullish Momentum
In the meantime, recent data from TradingView indicates that Solana’s native cryptocurrency is trading at $147.38 after appreciating by 0.71% in value over the last day. Technical indicators also suggest that SOL’s price could trend upward in the short to medium term.
Using the daily timeframe, the first sign of a bullish momentum is that the green candle shows that the closing price was higher than its opening price. It is worth noting that each candlestick represents a day’s trading.
Also, the relative strength index (RSI) for Solana is currently 59.54, which suggests that the coin is neither overbought or oversold and it’s in a neutral territory. However, the upward direction of the RSI indicates rising buying pressure, which is another proof of the bullish momentum.
The MACD also confirms that a price breakout to the upside will happen. The MACD line has crossed over the signal line and is moving above the zero line. Also, the MACD histogram bars are green, a further confirmation of this price prediction.
Source: TradingView