In this new Wednesday crypto nugget, our comments will focus on the evolution of the price of SOL, the native cryptocurrency of the Blockchain Solana. After a powerful rise in 2021, being 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 on our charts.
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A still bullish swing pattern on Solana?
After hovering in a bearish weekly swing pattern in 2020, the FLOOR exploded higher in 2021. It posted a all time top a $259.90 and has embedded a bullish weekly swing structure in which it is still moving. Thus, the entire 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 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 alerted us, at the time, to the beginning of a weekly bearish pullback. You can see, this one took place. Moving between resistance and support, the internal structure is currently bullish. However, in the event of loss of $31.82, the structure will return to bearish. This price action would give us a sign of a potential continuation of the retreat.
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, the lights are green for a return to decline on a daily scale. In contradiction to the weekly scale, does this unit of time give us enough relevant bearish signals? On the screenshot, you can find some annotations according to the future evolution of the price.
Theoretically, the SOL course The bearish swing structure should be broken downwards. However, for the odds to be greater, the ideal would be a weekly downtrend with a loss of $31.82. However, since it is still bullish, nothing is decided yet. I therefore invite you to watch the za gray one at 42.10 dollars.
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 is not broken to the upside with a resumption of $59.31, we will not be able to envisage more important objectives. Conversely, a loss of the bottom of the daily swing structure will allow us to have a new bearish objective: the $19.12.
Is the SOL in a strong position against Bitcoin?
Against Bitcoin, the FLOOR is in a bullish swing pattern on the weekly and daily scale. However, the internal structure of both time frames is bearish. A trend return took place the day before yesterday on a daily scale. As for theweekly scale, the reversal took place 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 invite you to check if necessary.
Since the internal structure is bearish on two time frames, we can see 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, which you could see with the bearish scenario that I have plotted on the chart. However, keep in mind that the chosen scenarios will not take place identically, the price structure may differ.
However, the daily and weekly swing pattern is bullish. We also need to prepare for a bullish scenario that could allow the SOL to be in outperformance against Bitcoin. On the chart, you can find a hypothetical reversal of the daily internal structure which will preserve the swing of the structure of the same time frame.
Here we are at the end of this analysis of the native token of the Solana blockchain. What should be remembered now 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 cryptocurrency, it will be necessary to revise your bullish scenarios against the dollar. All the more, faced with the latter, we can see a discrepancy between the weekly and daily time unit, which does not facilitate decision-making. So, now let’s watch the reversal point of the weekly internal structure which is currently bullish.
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