Solana 21-Week Cycle Calls for a September Bottom
Market cycles appear to point out that Solana (SOL) is about to establish a cyclical swing low at the beginning of September. SOL's price is running on a 21-week cycle which projects that we're to hit a swing high or swing low every 21 weeks or so.
Solana 21-Week Cycle
Cycles don't work well in isolation, as we can't expect to have a cyclical low or high every 21 weeks with exact precision. However, since its inception, Solana's price has experienced a significant price event every 21 weeks as follows:
31 August 2020 high
25 January 2021, we broke to a new all-time high. The actual low happened on 21 December 2020
21 June 2021 low
15 November 2021 high was the next 21-week event, but the actual all-time high was printed two weeks earlier
11 April 2022 high
The 21-week cycle predict the next major event on 5 September, and since the prevailing trend is bearish, we can expect a swing low to emerge around this date.
We can also distinguish other higher cycles that work within this structure, such as the 37-week cycle, which is very relevant.
These cycle intervals can be averaged to form a market model that can predict possible turning points for SOL's price.
For this reason, we use a 21-period Simple Moving Average (SMA) to see the relationship between the actual price and these cycles.
In simple terms, if we're trading above the 21-SMA, we're in a bullish cycle, and vice versa. If we're below the 21-SMA, we're in a bearish cycle.
