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 more market activities.

I could see more candles on this timeframe than on the monthly timeframe and this is because each candle on this timeframe is formed within the timeframe of 7days.

And also, I was able to spot a key level, and this level is functioning as a resistance level to the market, and it is expected for the market to be rejected when it trades to towards this level.

And moving to the daily timeframe, I could see more market candles than on the weekly timeframe.

And looking carefully, I was able to detect another level, and this level is functioning as a support level to the market price.

This support level can be said to be a valid level as it has severally been tested and respected by the market, and as seen above, the latest market bulllish leg is as a result of the rejection on the market from this support level.

The market on the 4hr timeframe is much noisier than that on the daily timeframe.

And on this timeframe, I was able to see the market more clearly, I could see the struggle between the buyers and sellers as they show their strength in the market.

And looking carefully, I was able to spot another level and this level is functioning as a resistance level to the market before it was broken by the market, and now it is functioning as a support level to the market, and it will help prevent the market from falling further.

With my bullish bias of the market, I proceeded to continue my analysis on the 2hr timeframe, as it is on this timeframe that I take my entry into the market.

On this timeframe, I noticed that the market has broken above this resistance level, and have retraced to retest this broken level.

And also, I can see that the market has continued on its bullish phase, and then 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 continued my analysis by adding the rsi to the monthly timeframe, and on this timeframe I noticed that the rsi has crossed above its 80% line.

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

That is, the weakness of buyers and strength of sellers in the market.

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

With this, we can expect to see a momentary bearish price pullback on the market, probably to retest it's support level.

Then I continued to the 2hr timeframe in search of entry into the market.

Getting to the 2hr timeframe, I noticed that the market has gotten close to its support level, so I decided to place my entry on this support level.

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.