 ▲ Solana (SOL) |
Solana (SOL) has entered a phase of extreme volatility contraction, compressing energy and raising expectations that a massive trend breakout capable of determining the market’s direction could occur soon.
According to crypto media outlet NewsBTC on February 17 (local time), Solana has recently been confined to a narrow price range, entering a so-called volatility squeeze phase. Technical analysts suggest that the longer this convergence persists, the stronger the eventual breakout tends to be, indicating that Solana may be approaching a critical inflection point.
The Bollinger Bands indicator shows that Solana’s volatility has fallen to historically low levels, supporting the likelihood of a powerful squeeze. The Relative Strength Index (RSI) is also building energy in neutral territory, signaling that once the balance tips toward either buying or selling pressure, a chain reaction of price movement could be triggered. In the past, Solana has recorded rallies of several dozen percent after undergoing similar contraction phases, heightening investor anticipation.
If an upward breakout materializes, Solana is expected to stage a steep rally toward major resistance levels at $180 and $200. Experts are leaning toward a bullish outlook, citing solid network activity and steady stablecoin inflows. Should the token reclaim and hold above the $200 mark, it could reenter the range of its previous all-time high, potentially ushering in a new bull market in earnest.
On the other hand, if downside support collapses, the downward trend could accelerate, posing a risk of a pullback toward the $120 level. With market leaders such as Bitcoin (BTC) and Ethereum (ETH) showing unstable trends, a breakout accompanied by strong trading volume will be essential for Solana to maintain independent momentum. Analysts emphasized the importance of identifying a clear directional move rather than being swayed by short-term volatility.
Despite broader supply-demand imbalances across the digital asset market, the technological maturity and user growth within the Solana ecosystem are sending positive signals. Global investors are closely watching whether, at the end of this volatility compression phase, Solana can reclaim leadership among Layer 1 blockchains and emerge as the market’s main protagonist. Given the compressed energy, the liquidity surge accompanying a breakout could serve as a decisive catalyst capable of reshaping the entire market landscape.
Disclaimer: This article is for investment reference purposes only and the publisher is not responsible for any losses resulting from investment decisions based on this content. The information provided should be interpreted solely for informational purposes.