In this new cryptocurrency nugget on Wednesday, our comments will focus on the evolution of the price of SOL, the native cryptocurrency of the Solana blockchain. After a sharp rise in 2021, being at the center of some NFT trends and despite some network cuts, the purple token is still climbing the top 10 cryptocurrencies in the market. Will last? Let’s see it now on our charts.
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A still bullish swing pattern on Solana?
After swinging in a bearish weekly swing pattern in 2020, the FLOOR exploded higher in 2021. He published a always high to $ 259.90 and built a bullish weekly swing pattern where it is still trading. Thus, the entire price evolution between 259.90 dollars and $ 19.12 it is of the internal structure. These swings are particularly interesting to analyze in a smaller unit of time.
However, we can determine the 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, in his time, of the beginning of a weekly bearish pullback. You can see, this has happened. Moving between resistance and support, the internal structure is currently bullish. However, in case of loss $ 31.82, the structure will return to being bearish. This price action would give us a signal of a potential continuation of withdraw.
What does the daily structure tell us?
What we can see is that the price is currently moving in a bearish swing pattern and a bearish domestic pattern. hence, the the lights are green for a return to decline on a daily scale. In contradiction to the weekly scale, does this time unit provide us with sufficiently relevant bearish signals? In the screenshot you can find some annotations based on the future evolution of the price.
Theoretically, the SOL course should break down the bearish swing pattern. However, for the odds to be greater, a weekly downtrend with a loss of $ 31.82 would be ideal. However, as it is still bullish, nothing is decided yet. So I invite you to look at the za gray one at $ 42.10.
A bullish daily CHoCH (black scenario) will likely favor a bullish continuation of the asset. For now, the SOL is moving below this resistance. As long as the daily fluctuation pattern is not interrupted to the upside with a resumption of $ 59.31, we will not be able to foresee more important objectives. Conversely, a loss of the low of the daily oscillating structure will allow us to have a new bearish target: the $ 19.12.
Is the SOL in a strong position against Bitcoin?
Against Bitcoin, the FLOOR it is in a bullish fluctuation pattern on a weekly and daily scale. However, the internal structure of both time frames is bearish. The day before yesterday there was a trend reversal on a daily scale. As for theweekly scale, the reversal occurred yesterday with a lower low than the previous one. In this screenshot, you will not be able to see it with the naked eye. However, I invite you to check if necessary.
As the internal structure is bearish on two time frames, a loss of the support on which the FLOOR has been evolving for several weeks. If this zone is lost, we can look at a return to a lower zone, potentially seen with the bearish scenario I have plotted on the chart. However, keep in mind that the expected scenarios will not unfold identically, the pricing structure may evolve differently.
in any case, the the daily and weekly fluctuation pattern is bullish. We also need to prepare for a bullish scenario that could allow the SOL to enter outperformance versus Bitcoin. On the graph it is possible to find a hypothetical inversion of the daily internal structure which will preserve the oscillating structure of the same time scale.
Here we are at the end of this analysis of the native token of the Solana blockchain. What should be remembered now is that it 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 revise your bullish scenarios against the dollar. All the more reason, in the face of the latter, there is a discrepancy between the weekly and daily unit of time, which does not facilitate the decision-making process. So, we now look at the reversal point of the weekly internal structure which is currently bullish.
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