Solana future trend using the Blockunity Perfect Cloud
Let's take a look at SOLUSDT with the help of the Blockunity Perfect Cloud (BPC) and analyse the past months as well as take a small prediction about what's to come.
2 scenarios come at play here.
Scenario 1: The price does not enter the cloud and bounces off of it with a nice green candle. A nice entry point for a long swing position, where we can start taking small profits whenever the price reaches the first or second extension and closing the full position when the price reaches the cloud again, depending on your risk management. Using the Signals of the Blockunity Strength Reversion (BSR) has proven to be effective in combination with the BPC for profit taking.
Scenario 2: The price enters the cloud. Here we recommend waiting for further development as we enter a zone of indecision where the price could stagnate at the current level before violently taking an upward or downward trend. Once the price exits the cloud we can take a decision following the trend of the movement. To consolidate our analysis we can use the Blockunity Breakout Detector (BBD) to see if the movement is effective or a trap.
- First we see that from July 2023 to today SOL made a nice 10x. Let us know in the comments why you think this is 😉
- Furthermore we see that since October 2023 the BPC is showing a Bullish trend for Solana, riding between the first and second extension of the cloud before falling in the cloud and shortly being underneath it. Nevertheless, the uptrend found some more momentum to start riding again between the first and second extensions.
- In the highlighted zone we can clearly see how the two extensions acted as support and resistance
- Today Solana is fastly approaching the upper limits of the trend following cloud so the price could potentialy break this support and enter the cloud in the coming days.
- Nevertheless, the cloud is pretty thick still and the trend is still Bullish, so we will have to see a violent move headed down to change the overarching trend.
2 scenarios come at play here.
Scenario 1: The price does not enter the cloud and bounces off of it with a nice green candle. A nice entry point for a long swing position, where we can start taking small profits whenever the price reaches the first or second extension and closing the full position when the price reaches the cloud again, depending on your risk management. Using the Signals of the Blockunity Strength Reversion (BSR) has proven to be effective in combination with the BPC for profit taking.
Scenario 2: The price enters the cloud. Here we recommend waiting for further development as we enter a zone of indecision where the price could stagnate at the current level before violently taking an upward or downward trend. Once the price exits the cloud we can take a decision following the trend of the movement. To consolidate our analysis we can use the Blockunity Breakout Detector (BBD) to see if the movement is effective or a trap.