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 moved to the weekly timeframe, and on this timeframe, I could see series of market activities.

Each candle on this timeframe was formed within the trading period of 7days, and I could see the impact of both buyers and sellers.

And looking carefully, I was able to spot a key level, and on this level, there are more sellers than buyers in the market, and as such, when the market trades towards it, we expect to see a bearish turnout on the market.

To get more market activities, I continued my analysis on the daily timeframe, and on this timeframe, I could see the market more clearly.

Alongside that, I was able to identify a key market level and this level is acting as a support level to the market, as there are more buyers than sellers on this level.

This level can be said to be a valid support level and the buyers have shown their strength multiple times when the market traded towards this level.

And to see the market more clearly, I moved to the 4hr timeframe.

On this timeframe, I could have a more better and understandble version of the price chart, as each candle was clearly seen.

Although the market was quite noisy as the buyers and sellers struggle to drive the market to their preferred direction.

And from the above screenshot, my bias of the market is bullish but I search for my entry on the 2hr timeframe.

On the 2hr timeframe, I noticed that the market has traded toward this support level and have been rejected by the support level.

Whenever this happens, it can be seen as a signal to place a buy order on the market but before doing that, 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 decided to add the rsi to the monthly timeframe, and on this timeframe, I noticed that the market is being overbought.

An overbought market is seen then the rsi crosses above its 80% line and this is an indication that the bears are about to take control of the market.

It is a market condition that signals the strength of the bears and the weakness of the bulls.

On the daily timeframe, I also noticed that the rsi has crossed above its 80% line , which is an Indication that the market is being overbought.

And as I earlier said, an overbought market is one which bearish change in market structure, as the buyers have become weak in the market.

And then I decided to check the 2hr timeframe for entry into the market.

Getting to the 2hr timeframe, I decided to place my buy order on the closest support level to the market price.

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.