Solana Price Faces Bollinger Bands Squeeze as Analysts Present Breakout Scenario

Key Insights:

• Solana price is seemingly poised for a breakout as Bollinger Bands contracted around $86.4 on the daily chart.
• Elliott Wave analysis aligns with Solana, suggesting an upside breakout.
• SOL ETFs amassed new inflows, suggesting confidence from institutional investors.

Crypto analyst Ali Martinez predicted a Solana (SOL) price breakout, citing the appearance of Bollinger Bands on daily charts. The Solana Elliott Wave analysis has further bolstered bullish sentiment surrounding the altcoin.

In addition, SOL exchange-traded funds (ETFs) trading in the U.S. continued to attract inflows. That implies confidence among institutional investors.

Bollinger Bands Squeeze Signals Solana Price Breakout

Solana is currently consolidating around $85.9, demonstrating a 0.6% price increase over the past 24 hours. However, market analyst Ali Martinez claims the SOL price is close to hitting a major price rally based on the Bollinger Bands squeeze on the daily charts.

According to the chart shared by Martinez, the SOL Bollinger Bands contracted around $86.4. This classic squeeze pattern suggests that SOL is consolidating in a narrow range, and a big move could occur soon.

Solana Price Bollinger Bands Setup | Source: Ali Martinez

Notably, Bollinger Bands consist of three lines plotted on a price chart: middle, upper, and lower bands. When volatility is high, bands widen. In contrast, bands contract or squeeze when volatility is low.

A squeeze happens when the bands narrow significantly. It signals building market tension, meaning traders are indecisive, and the asset is compressing.

Once volatility returns, the SOL price could see a rapid move of up to 10% in a short time. However, direction depends on context: bullish if breaking higher and bearish if cracking lower support.

Currently, the squeeze is already playing out, with a green candle breaking above the upper band. Solana price has already surged to an intraday high of $86.75, while the market cap climbed to $48.9 billion.

Solana Elliott Wave Analysis

Market analysis platform More Crypto Online further highlighted that conditions might be aligning for Solana to attempt an upside breakout. Their speculation is largely based on the Elliott Wave Analysis.

The platform posted a video analysis of the Elliott Wave count for Solana. The Elliott Wave Principle is a form of technical analysis that assumes market prices move in repetitive cycles driven by investor psychology.

Solana Elliott Analysis | Source: More Crypto Online

These waves come in two main types, impulse and corrective. Analysts label the waves on charts to predict the next price direction. In their post, More Crypto Online questioned whether Solana can start the next breakout attempt.

They see Solana as potentially completing a corrective phase and beginning the next impulsive upward wave. This is often wave 3 or wave 5, which are typically the strongest and longest.

If the Elliott Wave count is bullish, the next breakout attempt would mean breaking above recent resistance. Targets could be as high as $145, based on earlier predictions.

Solana ETF Profiling

Unsurprisingly, the most recent Solana price surge follows an optimistic outlook in the spot ETF market. Since their debut, spot Solana ETFs have shown strong but fluctuating interest. These funds have continued to attract capital from large investors despite volatility in the SOL price.

As of March 11, SOL ETFs recorded a cumulative total net inflows of $957.2 million. Also, about 1.6% of Solana’s total market cap is locked in ETFs. This means over 1.5% of the circulating SOL supply is held institutionally through these regulated vehicles, potentially supporting price upside.

Recent data from SoSoValue showed SOL ETFs reversed to $1.66 million net inflows on March 11. The reversal comes after 4 days of outflows, demonstrating renewed confidence from investors.

BSOL from Bitwise led with over $3.15 million, while Grayscale’s GSOL saw outflows of $1.49 million. Analysts have interpreted the data as smart money returning to the market as the Solana price stabilizes.

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