Topdown Analysis Of SOLUSDT Using Support And Resistance Strategy And RSI Indicator As A Confluence

Source

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.

---

---

ANALYSIS USING SUPPORT AND RESISTANCE STRATEGY

---

---

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.

Shown above is the screenshot of the chart solusdt on the monthly timeframe.

And as shown above, we will see that there are few market candles with no market noise.

And this is so because the candles on this timeframe are formed after a period of 1month of trading activities.

Then I moved to the weekly timeframe to continue my analysis.

On the weekly timeframe, I was able to detect a key resistance level on the market, and this level has been severally tested and respected by market price.

Then as I looked carefully, I noticed that the market has approached this level, and it is expected for it to break above this level or get rejected by this level.

Then I moved to the lower timeframe for more analysis inorder to make a profitable trading decision.

Moving to the daily timeframe, I noticed that there are more market activities in the market.

On this timeframe, there are more market noise and the candles on this timeframe were formed during the period of 1day.

Then I was able to detect another key level but now, it is functioning as a support level, and it is expected that if price retraces, it will not break below this level.

Then I moved to the 4hr timeframe for more market activities and on this timeframe, I can see more market activities.

Then I looked carefully and I noticed that the market has entered into the resistance level, and we can still see the formation of bullish candles.

Then I looked carefully and noticed that the market has broken a minor structure, and I expect the market to continue on its bullish trend.

With this, I decided to move to the 2hr timeframe for more analysis.

Then I moved to the 2hr timeframe where I was able to see market activities more clearly.

From the recent market structure, I expect to see the market retrace downward before it continues it's bullish trend.

With this, I decided to use rsi indicator as a confluence.

---

---

CONFLUENCE USING RELATIVE STRENGTH INDEX INDICATOR

---

---

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.

From the screenshot above, we can see that I applied the rsi indicator to the monthly timeframe.

And as seen above, the rsi is above the 80% line and this is an indication that the market is being overbought.

An overbought market often signals a bearish trend reversal, and this is in alliance with my analysis using support and resistance strategy.

Then I moved to the weekly timeframe, and on this timeframe, I also noticed that the rsi indicator is above the 80% line.

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

Then I decided to move to the 2hr timeframe for more market analysis and an entry into the market.

Then moving to the 2hr timeframe, and I noticed that the market is being overbought.

Then I decided to enter a buy order on the market, and I placed my entry on the broken structure.

And my take profit was placed on the closest resistance level on the market, and this can be seen above.

---

---

CONCLUSION

---

---

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.