Topdown Analysis Of SOLUSDT Using Support And Resistance Strategy And RSI Indicator As A Confluence
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 continued my analysis by moving to the weekly timeframe as I believe that I will see more candles on the weekly timeframe.
On this timeframe, I could see the market more clearly, and I could see that this timeframe has more candles than the monthly timeframe.
And looking carefully, I was able to spot a key level and this level is functioning as a resistance level to the market, and the market is expected to be rejected whenever it trades towards this level.
Getting to the daily timeframe I could see a more noisy market.
I realised that the daily timeframe has more candlestick than the weekly timeframe, and on this timeframe I was able to identify another key level.
This level is currently functioning as a support level to the market, and when the market trades towards this level, we can expect to see a bullish rejection of the market.
And I noticed that the market has approached it's resistance level and I can expect to see a bearish rejection on the market before it gets to its support level.
Getting to the 4hr timeframe, I could see how noisy the market is, I could feel the presence of the buyers and sellers as they struggle to drive the market to their preferred direction.
And looking carefully on this timeframe, I could see a bearish rejection as the market traded towards its resistance level, and this was expected.
It is from this rejection that I intend to take my entry into the market but my entry is usually taken on the 2hr timeframe.
On the 2hr timeframe, I could see the bearish move on the market as it keeps forming lower highs and lower lows.
Looking carefully, I noticed that the market keeps breaking bearish structure but I expect to see a bullish rejection before it continues its bearish move.
And with my bias of the market, I decided to search for entry using the relative strength index 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.
Adding rsi to the monthly timeframe, I noticed that the market is being overbought, and an overbought market can be seen when the rsi crosses above its 80% line.
It is a market condition that signals a bearish trend reversal of the market, that is, a weakness of the bulls ans the strength of the bears.
And this is in alliance with my analysis using support and resistance strategy, and I decided to move to the daily timeframe for more confluence.
On the daily timeframe, I noticed that the rsi has crossed below its 20% line, and this is an indication that the market is being oversold.
And as such, we can expect to see a bullish retracement on the market, before it continues on its bearish move.
And then I decided to check on the 2hr timeframe in search of my entry.
Getting to the 2hr timeframe, I noticed that Market was still oversold, and we can expect to see a bullish retracement.
And as such, I decided to place my entry on the closest structure broken by the market and my take profit was placed on the market closest support level.
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.
Upvoted! Thank you for supporting witness @jswit.
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