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.

The next timeframe I decided to analyse is the weekly timeframe, and from the above screenshot we can see that there are more candlestick on the weekly timeframe than on the monthly timeframe.

I looked carefully on this timeframe and I was able to spot a key level and this level is functioning as a strong resistance to the market price.

This level can be said to be a strong resistance level as it has been tested and respected severally by the market.

I then continued my analysis by moving to the daily timeframe and on this timeframe, I could see series of market activities, I could see the struggle between the buyers and sellers as they struggle to push price to their preferred direction.

And from this timeframe, I could spot another key level and this level is functioning as a support level, and it is expected for the market to be rejected once it trades towards this level.

Also I noticed that the market has reacted off this resistance level and I expect to see a momentary bearish move from the market.

Getting to the 4hr timeframe, I could see the market price more clearly.

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

And from the above screenshot, we can see that the market is gradually approaching its resistance level to retest it, and when this happens, I expect to see a bearish rejection of the market.

And from the above screenshot, I have my bearish bias of the market but I expect to see a momentary bullish retracement before the bearish move.

And before entering the market, I decided to search for confluence using the relative strength index 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.

Beginning with the monthly timeframe, I decided to add the rsi and I notice that the rsi has crossed above its 80% line and this is an indication that the market is being overbought.

An overbought market is a market that signals a change in market direction from bullish to bearish, that is, it is seen as a bearish trend reversal signal.

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

Applying the rsi to the daily timeframe I noticed that the rsi has gotten to its 20% line and this is an indication that the market is being oversold.

An oversold market is a market condition that indicates the change in market power from the sellers to the buyers.

This implies that the market should experience a momentary bullish move before it's bearish move.

Getting to the 2hr timeframe which is the timeframe I take my entry, I noticed that the market has gotten to its overbought region as it has crossed above its 80% level.

And with this, I placed my sell entry on the closest resistance level to the market and by take profit on the market closest support 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.