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 decided to move to the weekly timeframe for more market analysis, and on this timeframe there are more candlestick than than on the monthly timeframe because each candle here takes a period of 7days to be completed.

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

And this level is a valid level as the market has made several touches on it and has been unable to break above it, and it is expected for the market to be rejected whenever it trades towards this level.

And moving to the daily timeframe, I could see the market more clearly, I could see noise in the market which shows the presence of the buyers and sellers in the market.

And looking carefully, I was able to spot another level and this level is functioning as a support level to the market, and it is expected for the market to be rejected whenever it trades towards this level.

And looking at the market very well, I realized that this level is a valid level as the market has made several touches on this support level but it has been unable to break below this level.

And getting to the 4hr timeframe, I could see the market more clearly, I could feel the pressure from the buyers and sellers.

And from the above screenshot, I noticed that the bears are in control as the market kept forming lower lows and lower highs as it approaches its support level.

And looking at the screenshot, I noticed that the market has been rejected from this level as I have seen a rejection candle formed from this level.

And getting to the 2hr timeframe, my bullish bias of the market has already been formed, and I decided to look for entry into the market.

And then I discovered another level which is functioning as my take profit, I expect the market to trade towards this level, and to enter the trade, 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.

I then decided to add the rsi to the monthly timeframe and on this timeframe I realised that the market is being overbought and an overbought market can be detected when the rsi crosses above its 80% line.

And this is an indication that the market is about to experience a bearish trend reversal, an overbought market signals a change in market strength from the buyers to sellers.

And with this, I decided to move to the daily timeframe in search of more confluence.

And getting to the daily timeframe, I could see that the market is being oversold and this is detected when the rsi crosses below its 20% line.

An oversold market signals a bulllish trend reversal of the market, that is , a change in market dominance from the sellers to the buyers.

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

And getting to the 2hr timeframe, I decided to place my entry on the closest support level to the market and my take profit was placed on the level I marked earlier.

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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.