Topdown Analysis Of SOLUSDT Using Support And Resistance Strategy And RSI Indicator As A Confluence

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Hello great minds,

It is a wonderful opportunity to come before you all today to discuss on an issue of great importance in the cryptospace.

I believe you are doing perfectly fine and are enjoying your activities in the community as you actively promote steemit across various social media platform.

Today, I will be sharing my analysis on solusdt, and Solana is a popular token in the cryptospace.

Solana is a very popular project in the cryptospace and has brilliant team who are diligent and have great fundamentals, and as such, I will be sharing my analysis.

Please stay tuned and check out my analysis on this great token.

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ANALYSIS USING SUPPORT AND RESISTANCE STRATEGY

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My analysis of the cryptomarket often begins from the higher timeframe to the lower timeframe, but I prefer beginning mine from the monthly timeframe.

The monthly timeframe helps me a lot in filtering out noise from the market, and alongside that, it also plays a huge role in the identification of market trends.

Begining with the monthly timeframe of the pair solusdt, we can see that there are bullish and bearish candles present in the market.

And we can also see that there are lesser candles on this timeframe, and this is because each candle is formed within the space of 1month.

Also on this timeframe, it is easier for the overall market trend to be detected, and we can see that the market is being bullish on its most recent legs.

To get more market information, I decided to visit the weekly timeframe, as I am convinced that there's will be more trading information on this timeframe than on the monthly timeframe.

And getting to the weekly timeframe, I noticed that there are more market information than that given on the monthly timeframe.

And on this timeframe, I was able to comfortably spot out my key levels, I was able to identify a key resistance level on the price chart.

On this level, there tend to be a higher selling pressure than buying pressure, and this tend to push the market downwards.

Continuing my analysis on the daily timeframe, I could see series of noise in the market.

On this timeframe, I could see that the market has been rejected by this resistance level as it has formed series of bearish candles, resulting in the formation of lower lows and lower highs in the market.

And looking carefully at this timeframe, I was able to spot another level but this level will be functioning as a support level to the market, and here, there tend to be more buyers than sellers in the market.

And it is expected that when the market trades to this level, the strength of the buyers will be shown as the market will begin to form bullish candles.

I then continued my analysis on the 4hr timeframe, and on this timeframe I can see how noisy the market is.

I can see series of bearish and bullish candles forming one after the other in the market, and I also noticed that the bears are taking control over the market, as the market is forming more of bearish candles.

With this, I will patiently wait for the market to trade towards this support level, and when it gets to this level, I will place a buy order in the market.

I then continued my analysis on the 2hr timeframe in search of entry into the market.

With my analysis, my bullish bias of the market has been built, and as such, I am in search of a bullish order block to take my buy order on the market.

I then decided to search for confluence using the relative strength index indicator.

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CONFLUENCE USING RELATIVE STRENGTH INDEX INDICATOR

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The rsi indicator is a technical tool that is used to detect overbought and oversold market.

When the rsi oscillator crosses above the 80% line, the market is said to be overbought and this is known to be a bearish trend reversal signal.

And when the rsi oscilator crosses below the 20% level, the market is said to be oversold.

An oversold market signifies a bullish trend reversal signal, that is , the market is expected to move in the upside direction.

Applying the rsi to the monthly timeframe, I noticed that the market is being overbought as the rsi has crossed above its 80% line.

And this is usually seen to be a bearish trend reversal signal, a market condition indicating a change in strength from the buyers to the sellers.

This implies that we should expect to see a momentary bearish move of the market.

On the daily timeframe, I noticed that the market is being oversold, and an oversold market is one giving a bullish trend reversal signal.

A Market condition showing the change in market strength from the bears to the bulls, and from this, I continued on the 2hr timeframe to search for my entry.

Continuing on the 2hr timeframe, I noticed that the market is being oversold.

And as such, I placed a buy order on the closest support level to the market, and my take profit was placed on the market closest resistance level, just as seen above.

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CONCLUSION

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Solana is a very good project in the cryptospace but I encourage all to make their own research before investing in any token.

My post should not be taken as a financial advise rather as an educational content.