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.

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 moved to the weekly timeframe to continue my analysis and as seen above, this timeframe has more candlestick than the monthly timeframe.

On this timeframe, I was able to spot a key level and this level has been tested severally by the market and the market has respected this level severally.

And now this level will be functioning as a resistance level to the market price, and as a resistance level, it is expected for the market to be rejected whenever it's trades towards this level.

Getting to the daily timeframe, I could see the market price more clearly, I noticed that the market has traded towards this resistance level already, and we can expect to see a bearish rejection on this timeframe.

Alongside this, I was able to identify another level, and this level is functioning as a support level to the market.

And this level can be said to be a valid level as the market has made several touches on it and has been unable to break below it.

And as such, we can expect to see a bullish retracement of the market when it trades towards this level.

To get more market information I moved to the 4hr timeframe, and on this timeframe, I could see lots of market candles.

I could feel the presence of that buyers and sellers simultaneously in the market as they struggle to drive the market to their preferred direction.

And with my analysis, I noticed that the buyers has recently controlled the market and now we can expect to see a change in market control.

Getting to the 2hr timeframe, I noticed that the market is being bullish and has approached a strong resistance.

From the above screenshot, we can see that the market has been forming higher highs and higher lows, and then it fails to form a higher but instead formed the same low, this can be see as an indication of a bearish trend reversal of the market.

And with this, I decided to search for confluence using the rsi indicator.

---

---

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.

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

An overbought market is one that shows the weakness of the buyers and the strength of the sellers in the market, and as such, we can expect to see a bearish move of the market.

And this is in alliance with my analysis using support and resistance strategy.

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

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

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

And moving to the 2hr timeframe, I also noticed that the market is being overbought, as the rsi has crossed above its 80% line.

And as such, I placed my sell order of the market on the closest resistance level to the market and my take profit on the market closest support level, just as 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.