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 I could see the market more clearly, I could see the formation of several candles as each candle is being formed within the trading period of 7days.

And looking carefully, I was able to identify a key level and this level is functioning as a support level to the price chart, and the market is expected to be rejected whenever it trades towards this level.

And from the above screenshot, we can see that this level is a valid level, as the market made noticeable reactions as it trades towards this level.

I then continued my analysis by moving to the daily timeframe, and on this timeframe I could see the market more clearly.
I could see the formation of several bullish and bearish candles which indicates the presence of the buyers and sellers in the market.

And looking carefully, I was able to identify another key level, and this level formerly functioned as a resistance level until it was broken and is now acting as a support level to the price chart.

From the above screenshot, we can see that the market broke above this level and we can expect to see a retest on this broken level before it continues it's bullish move.

I then continued my analysis to the 4hr timeframe, and in this timeframe, I could see lots of noise in the market as the buyers and sellers struggle to drive the market to their preferred direction.

And looking carefully, I could see that the buyers have proven stronger in the market, as it kept forming higher highs and higher lows in the market.

And I expect to see a bearish retracement on the price chart, and then a bullish continuation in the market.

And with my bullish bias of the market, I decided to search for bullish entries into the market.

And looking carefully, I was able to identify a minor support level which I expect the market to trade towards, and before this, I decided to search for confluence using 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 my rsi to the price chart, I could see the market is being overbought and an overbought market is signaled when the rsi crosses above its 80% line.

An overbought market is understood to be a bearish trend reversal of the market, that is, a change in market strength from the buyers to the sellers.

I then continued my analysis to the daily timeframe and on this timeframe, I could see that the market is being overbought also as it has crossed above its 80% line.

An overbought market shows the weakness of the buyers and the strength of the sellers at the moment in the market.

And moving to the 2hr timeframe, I proceeded to place my entry on the closest support level to the price chart and my take profit was placed in a way I get a risk to reward of 1:3.

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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.