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.

I then continued my analysis by moving to the weekly timeframe and on the timeframe I could see the market more clearly, I could see the formation of several candles as each candle is being 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 support level to the price chart, and the market is expected to be rejected whenever it trades towards this level.

And from the above screenshot, we can see the validity of this level as there is always a noticeable reaction in market price whenever it trades towards this level.

I then decided to move to the daily timeframe to continue my analysis and on this timeframe I could see the market more clearly, I could see the formation of several bullish and bearish candles which indicates the presence of buyers and sellers in the market.

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

From the above screenshot, it is evident that this level is a valid level as the market has failed to break above it, but rather has Made several touches on it and has been severally rejected.

And getting to the 4hr timeframe I could see the market more clearly, I could see lots of noise in the market, as the buyers and sellers struggle to show dominance in the market.

And from the above screenshot, I can see that the market is aggressively trading towards its resistance level, and when it gets to this level, i can expect to see a bearish rejection in the market

And with my bearish bias, I moved to the 2hr timeframe, and on this timeframe, I could see lots of noise in the market.

I could already see the formation of bearish candles in the market, which will indicate the presence of the sellers in the market.

And before taking my entry, I decided to search for trading confluence using relative strength index.

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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.

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

An overbought market is also a market condition that signals a bearish trend reversal of the market, that is, a change in market strength from the bulls to the bears.

It shows that the sellers are about to take control of the market and drive the market downwards.

And moving to the daily timeframe, I could see that the market is also being overbought, as it has crossed above its 80% line.

And an overbought market signals a bearish trend reversal as earlier explained, and it this shows the change in strength from the buyers to the sellers in the market.

And with my bearish bias, I moved to the 2hr timeframe In search of bearish entries into the market.

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

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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.