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.

I then continued my analysis by moving to the weekly timeframe, and on this timeframe, each candle is formed after a market period of 7days.

And looking carefully at this timeframe, I was able to spot a key level and this level is functioning as a resistance level to the market price.

And the market is expected to be rejected when it trades towards this level, as there are more sellers on this level than buyers.

I then continued on the daily timeframe, and on this timeframe, I could see more market activities.

I could feel the presence of buyers and sellers as they struggle to drive the market to their preferred direction, and on this timeframe, each candle is formed after a trading period of 1day, which is 24hrs.

Looking carefully at this timeframe, I was able to spot another key level, and this level is functioning as a support level to the market price.

And as usual, whenever the market trades to this level, we expect to see a market rejection.

I then continued my analysis on the 4hr timeframe, and as the timeframe explains, each candle formed here was created after the trading period of 4hrs

And looking carefully at this timeframe, I could see the market more clearly, and I could see the how the buyers and sellers struggle to drive price to their preferred direction.

And from the above screenshot, I expect the market to retrace upwards before continuing on its bearish move, and as such I visited the 2hr timeframe for an entry.

On the 2hr timeframe, I saw noise in the market and on this timeframe, I was able to spot another level.

It is on this level that I intend to take my entry into the market but before then, I 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.

I then applied the rsi to the monthly timeframe and on this timeframe, I noticed that the market is being overbought and this is because its rsi has crossed above its 80% line.

An overbought market signals a bearish trend reversal, that is, a change in market strength from the bulls to the bears.

And this is in alliance with my analysis using support and resistance strategy.

Getting to the daily timeframe, I could see that the rsi has crossed below its 20% line and with this, the market is said to be oversold.

An oversold market signals a bullish trend reversal, that is a market condition, in which the buyers are about to take control of the market.

And with this, I continued my analysis on the 2hr timeframe, as it is on this timeframe that I take my entry into the market.

On this timeframe, I noticed that the market is being overbought and we expect to see the bears take control of the market.

And with this, I proceeded to enter a sell order on the market, I placed my entry on the closest resistance level to the market and my take profit was placed on the market closest support 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.