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.

Then I continued my analysis by moving to the weekly timeframe, and on this timeframe, I saw more candlestick than the monthly timeframe.

In this timeframe, each candle was formed during the market period of 1week, and on this timeframe, I was able to spot a key market level.

This level is functioning as a resistance level to the market price, and it is expected for the market to be rejected by this level when it's trades towards it.

Then I continued my analysis by moving to the daily timeframe, and on this timeframe, I could see more market activities as usual.

I could see the buyers and sellers struggle to drive price to their preferred direction and from the struggle, I can see the buyers taking the lead.

And on this timeframe, I was able to point out a strong level in the market and this level will be functioning as a support level to the market price.

It is expected for the market to be rejected by this level to the bullish side.

Getting to the 4hr timeframe I could see noise in the market.

I could see series of bullish and bearish candles, which might be as a result of market manipulation.

Also looking carefully, I was able to draw out a strong level using my trend line, this level will be functioning now as a support level to the market price.

And whenever the market trades to this level, I will enter a buy to the market.

Having my bullish bias of the market, I continued my analysis on the 2hr timeframe.

It is on the 2hr timeframe that I take my entry into the market but before placing an entry, I decided to search for confluence using the rsi 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 indicator to the monthly timeframe, and from the above screenshot, I can see that the rsi has crossed above its 80% line.

And this is an indication that the market is being overbought and an overbought market signals a bearish trend reversal.

That is, the market is expected to experience a momentary bearish price pullback.

Applying the rsi to the daily timeframe, I noticed that the rsi has crossed above the 80% line and this is an indication that the market is being overbought.

An overbought market signals a bearish trend reversal, that is a formation of bearish candles in the market.

An overbought market is required to be sold for balance to be maintained in the market, then I proceeded to the 2hr timeframe for entry into the market.

Getting to the 2hr timeframe, I noticed that the rsi has crossed above its 80% line.

And this is an indication that the market is being overbought, and I expect the market to retrace to the downside before embarking on its bullish move.

I then place my entry on the closest support level and my take profit on the 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.