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.

Then I continued my analysis by moving to the weekly timeframe and on this timeframe I could see the market more clearly, and I could see more candles as each candle on this timeframe takes a period of 7days to be completely formed.

And looking very carefully, I was able to identify a 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.

And from the screenshot above, we can see that this resistance level is a valid level as it has been severally tested and respected by the market, and we can expect it to be respected in the future.

I then continued my analysis on the daily timeframe and on this timeframe, I could see lots of candles in the market which indicates the presence of buyers and sellers.

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

And looking carefully, I realised that the market has made several touches on this level and this made has been unable to break below, and this confirms the validity of the level.

And moving 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 drive the market to their preferred direction.

And looking carefully, I noticed that the market is ranging, that is, neither the bears nor bulls are in control, as the market is neither in an uptrend nor downtrend.

And on this timeframe, I was able to identify another key level and this level is functioning as a resistance level and then I expect this level to be my take profit level.

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

And then I realised that the market is trading towards its support level and I intend to take my entry when the market trades towards this support level.

And before taking my entry, 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.

I then decided to add my rsi to the monthly timeframe and I realised that the market is being overbought and an overbought market is detected when the rsi crosses above its 80% line.

An overbought market often signals a bearish trend reversal, that is, a change in market strength from the buyers to the sellers.

And with this, I decided to move to the 4hr timeframe for more confluence in the market

And moving to the daily timeframe, I could see the market more clearly and I realised that the market is being oversold, and this is detected when the rsi crosses below its 20% line.

And an oversold market signals a bullish trend reversal of the market, that is, a change of market strength from the sellers to the buyers.

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

And with my bullish bias of the market I approached the 2hr timeframe in search of an entry into the market.

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