In this new crypto nugget on Wednesday, our comments will focus on the evolution of the price of SOL, the native cryptocurrency of the Blockchain Solana. After a strong surge in 2021, the center of some NFT trends and despite some network cuts, the purple token is still climbing into the top 10 cryptocurrencies in the market. Will it last? Let’s see that right now in our charts.
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A still bullish swing pattern on Solana?
After floating in a bearish weekly swing pattern in 2020, FLOOR exploded higher in 2021. It placed a all time high Bee $259.90 and has built a bullish weekly swing structure in which it still trades. So the whole evolution of the price between 259.90 dollars and $19.12 is of the internal structure. These oscillations are particularly interesting to analyze in a smaller time unit.
However, we can determine weekly trend of the internal structure. At the top of the swing range, the small dotted lines with a bearish arrow represent a bearish breakout of the internal structure. This should have warned us at the time of the start of a weekly bearish pullback. You can see, this took place. The internal structure is moving between resistance and support and is currently bullish. In case of loss of $31.82, the structure will turn bearish again. This price action would give us a sign of a possible continuation of the to withdraw.
What does the daily structure tell us?
What we can see is that the price is currently moving in both a bearish swing pattern and a bearish internal pattern. Therefore, the lights are green for a return to decline on a daily scale. Does this unit of time, unlike the weekly scale, give us enough relevant bearish signals? In the screenshot you will find some annotations according to the future evolution of the price.
Theoretically, the SOL course should break the bearish swing pattern. However, to increase the odds, the ideal would be a weekly bearish trend with a loss of $31.82. However, as it is still bullish, nothing has been decided yet. I therefore invite you to check the z . to watchgray for $42.10.
A daily bullish CHoCH (scenario in black) will likely favor a bullish continuation of the asset. For now, the SOL is moving below this resistance. As long as the daily swing pattern upwards is not broken with a resumption of $59.31, we will not be able to imagine more important objectives. Conversely, a loss from the bottom of the daily swing structure will allow us to have a new bearish target: the $19.12.
Is the SOL Strong Against Bitcoin?
Against Bitcoin, the FLOOR is in a bullish swing pattern on the weekly and daily scales. However, the internal structure of both timeframes is bearish. The day before yesterday a trend reversal took place on a daily scale. Concerning theweekly scale, the reversal occurred yesterday with a bottom lower than the previous one. In this screenshot, you can’t see it with the naked eye. Nevertheless, I invite you to check if necessary.
Since the internal structure is bearish on two timeframes, we can envision a loss of support on which the FLOOR has been evolving for several weeks. If this zone is lost, we could be looking at a return to a lower zone, which you may see with the bearish scenario I have plotted on the chart. However, keep in mind that the intended scenarios will not take place identically, the price structure may evolve differently.
however, the the daily and weekly swing pattern is bullish. We also need to prepare for a bullish scenario that will see the SOL in outperforming Bitcoin. On the chart you will find a hypothetical reversal of the daily internal structure that maintains the swing structure of the same time scale.
Here we are at the end of this analysis of the native token of the Solana blockchain. Now what needs to be remembered is that he is in a mixed situation against bitcoin. Indeed, the swing structure is bullish on two time frames while the internal structure is currently bearish. If the SOL continues to weaken against the king of cryptocurrencies, it will be necessary to reconsider your bullish scenarios against the dollar. All the more in the latter we see a discrepancy between the weekly and daily time unit, which does not facilitate decision-making. So now let’s look at the turning point of the weekly internal structure which is currently bullish.
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