In this new Wednesday crypto nugget, our commentary will focus on the evolution of the price of SOL, the native cryptocurrency of Blockchain Solana. After a strong rise in 2021, where it was at the center of some NFT trends and despite some network cuts, the purple token is still climbing into the top 10 cryptocurrencies on the market. Will it last? Let’s see it right now on our charts.
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A still bullish swing pattern on Solana?
After hovering in a bearish weekly swing pattern in 2020 FLOOR exploded higher in 2021. It posted a all time high on $259.90 and has built a bullish weekly swing structure that it still trades with. Thus the entire development of the price between 259.90 dollars and $19.12 is of the internal structure. These fluctuations are particularly interesting to analyze in a smaller unit of time.
However, we can decide weekly trend of the internal structure. At the top of the swing area, the small dashed lines with a bearish arrow represent a bearish breakout of the internal structure. This should have warned us at the time about the beginning of a weekly bearish pullback. You see, this one took place. Moving between resistance and support, the internal structure is currently bullish. However, in case of loss of $31.82, the structure will revert to bearish. This price action would give us a sign of a potential continuation of pull back.
What does the daily structure tell us?
What we can see is that the price is currently moving in a bearish swing pattern as well as a bearish internal pattern. Therefore is the lights are green for a return to decline on a daily scale. Unlike the weekly scale, does this time unit give us sufficiently relevant bearish signals? On the screen you can find some annotations according to the future development of the price.
Theoretically, it is SOL course should break the bearish swing pattern. But for the probability to be higher, the ideal would be a weekly bearish trend with a loss of $31.82. But since it is still bullish, nothing is decided yet. I therefore invite you to see zgray one for $42.10.
A daily bullish CHoCH (scenario in black) is likely to favor a bullish continuation of the asset. For now the SUN is moving under this resistance. As long as the daily swing pattern is not broken to the upside with a resumption of $59.31, we will not be able to imagine more important goals. Conversely, a loss of the bottom of the daily swing structure will allow us to have a new bearish target: $19.12.
Is SOL in a Strong Position Against Bitcoin?
Mod Bitcoin is FLOOR is in a bullish swing pattern on the weekly and daily scale. However, the internal structure of both timeframes is bearish. A trend reversal took place the day before yesterday on a daily scale. regardingweekly scale, the reversal occurred yesterday with a bottom lower than the previous one. In this screenshot, you won’t be able to see it with the naked eye. Nevertheless, I encourage you to check any
Since the internal structure is bearish on two time frames, we can imagine a loss of the support on which FLOOR has been developing for several weeks. If this zone is lost, we could be looking at a return to a lower zone, which you potentially see with the bearish scenario that I have plotted on the chart. Remember, however, that the intended scenarios will not take place identically, the price structure may develop differently.
However the daily and weekly swing pattern is bullish. We also need to prepare for a bullish scenario that could allow SOL to join better results compared to Bitcoin. On the chart you can find a hypothetical reversal of the daily internal structure, which will maintain the swing structure of the same time scale.
Here we are at the end of this analysis of native token of the Solana blockchain. What must be remembered now is that he is in a mixed situation against bitcoin. In fact, the swing structure is bullish on two time frames, while the internal structure is currently bearish. If SOL continues to weaken against the king of cryptocurrencies, it will be necessary to revise your bullish scenarios against the dollar. All the more, facing the latter, we can see a discrepancy between the weekly and the daily unit of time, which does not facilitate decision-making. So now let’s see the reversal point of the weekly internal structure which is currently bullish.
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