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.

And then continuing my analysis, I moved to the weekly timeframe and on this timeframe, I could see more candles and this is because each candle on this timeframe is formed within the trading period of 7days.

And looking carefully, I was able to identify a key level and this level is functioning as a resistance level to the market price and the market is expected to be sold whenever it trades towards this level.

And from the above screenshot, we can see that the market has made several touches on this level and has been unable to break above it, thus confirming the strength of this level.

And moving to the daily timeframe I could see the market more clearly, I could see more candles as here, each candle takes a period of 24hours to be completely formed.

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

And as seen above, whenever the market trades towards this level it is always rejected as there are lots of buying pressure on that level.

And moving to the 4hr timeframe I could see the market more clearly, I could feel the presence of the buyers and sellers as they struggle to drive the market to their preferred direction.

And looking very carefully, I was able to spot another level, and this level is functioning as a resistance level to the market and we can expect to see a rejection from this level.

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

I then continued on the 2hr timeframe with my bearish bias of the market.

I intend to take my sell order off the resistance level that was spotted with an horizontal line, and then I decided to add the rsi indicator for trading 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.

Applying the rsi to the monthly timeframe, I could see that the market is being overbought and an overbought market can be detected when the rsi crosses above its 80% line.

An overbought market is understood to mean a bearish trend reversal market, that is, a market condition showing the weakness of the bulls and the strength of the bears.

With this, I decided to move to the daily timeframe for more confluence.

And moving to the daily timeframe, I could see that the market is being overbought and as expected earlier, this is usually detected when the rsi crosses above its 80% line.

This market condition can also be understood to mean that we can now expect a bearish move in the market, and this is in alliance with my analysis using support and resistance strategy.

And then I decided to move to the 2hr timeframe for entry into the market.

With my bearish bias of the market, I moved to the 2hr timeframe in search of bearish entry.

I then decided to place my entry on the closest resistance level to the market and my take profit was placed 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.