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 more candles on this timeframe as each candle here is being formed within a trading period of 7days, and looking carefully at the market, i was able to identify a key level and this level is functioning as a resistance level to the market price.

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

And getting to the daily timeframe I could see the market more clearly, I could see more noise in the market which is as a result of the presence of the buyers and sellers in the market.

And looking carefully, I was able to identify another level, and this level is functioning as a support level to the market price and whenever the market trades towards this level, we can expect to see a bullish rejection.

And from the above screenshot, I could see that the market has made several touches on its support level, and this shows that this level is a valid level and is expected to be respected again by the market.

I then continued my analysis on the 4hr timeframe and on this timeframe, the market can be seen very clearly.

On this timeframe, I could see that the market has been rejected from this support level just as expected, and I also expect to see the market continue towards its resistance level.

And then, I decided to move to the 2hr timeframe in search of entry, as it is on the 2hr timeframe that I search for entry into the market.

And moving to the 2hr timeframe which is the timeframe I intend to search for my entry, I was able to identify the closest resistance level to the market which will be my take profit level in the market.

And with my bullish bias of the market, I decided to search for trading 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 could see that the market is being overbought and an overbought market signals a bearish trend reversal.

And an overbought market can be detected when the rsi crosses above its 80% line, and this can also be seen to mean the weakness of the bulls and the strength of the bears in the market.

And moving to the daily timeframe, I could see the market more clearly and I could see that the market is being overbought.

And as earlier explained, an overbought market signals a bearish trend reversal of the market, which is an indication that the sellers are about to take control of the market.

And then I decided to move to the 2hr timeframe in search of entry into the market.

And getting to the 2hr timeframe, I expect the market to experience a bearish retracement so I can join the market on its bullish move.

Then I decided to place my entry on the closest support level to the market, and my take profit was placed on the closest resistance level to the market price.

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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.