๐ Daily TA: Solana vs Ethereum (SOL/ETH) | 18-01-2022
Hodl, dear members of Leofinance!
The crypto market is in the phase of correction (against fiat money). That's why let's make a small change and start to analyze the pairs of the major cryptocurrencies. For example, today, I would like to comment on the price chart of Solana vs Ethereum. Solana is also viewed as a potential Ethereum competitor.
So, let's start from the monthly time frame (MN), after the solid price increase, SOL/ETH has recently formed three Dojis (one after another) - a Long-Legged Doji (in October), Gravestone Doji (in November), and just Doji (in December): The sequence of these Dojis is a clear signal that the market has been in a consolidation phase.
In my view, the weekly time frame (1W), confirms the consolidation as well. SOL/ETH has been moving sideways since September 2021: Above, I've included the linear chart to clear the volatility from the price (this is an approach I use).
In the daily chart (1D), recently a Bearish Moving Average Crossover took place - the 30-day Moving Average (MA 30) has dropped below the 90-day Moving Average (MA 90) and they have started to move sideways together: In my view, the fact that these two key MAs are moving sideways confirms the continuation of the market consolidation.
The 4-hour chart (4H), confirms the consolidation as well - SOL/ETH has formed a Symmetrical Triangle: As can be seen from the chart, the price is in the final part of the triangle. And it is a common trend continuation pattern. But, for now, there is no even initial signal in which direction the price will exit the triangle.
To sum up: most major time frames show that SOL/ETH is in a phase of consolidation. There is no clear signal in which direction the price will exit the consolidation. I don't exclude some fake breakouts at the beginning. So, the traders/investors should be very cautious.
Last but not least, I want to remind you that the Technical Analysis theory says: 'The longer the consolidation the more reliable and sustainable the subsequent trend will be'. The question is: 'In which direction SOL/ETH will start its journey once it ends the consolidation: up or down?'
To be continued ...
As of the time of writing, the crypto pair SOL/ETH is at the level of $0,043864 on the Huobi exchange, according to TradingView.
A few words about me:
Just to let you know: I've been working professionally as a currency analyst for the last 15 and a half years and as a cryptocurrency analyst for the last 4 and a half years.
Important!
Keep in mind, that thoughts expressed here are my own, and they should not be regarded as recommendations for any cryptocurrency/commodity trades, investments and etc.
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