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.
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.
Continuing my analysis on the weekly timeframe, I could see more candlestick than there are on the monthly timeframe.
And this is because each candle on this timeframe was formed within the space of 1week.
And on this timeframe, I was able to spot a key level in the market, a level which is functioning as a resistance level to the price chart.
And as seen above, the market has been rejected by this level which can be confirmed by the formation of several bearish candles.
Then I decided to continue my analysis on the daily timeframe, and on this timeframe, there are lots of noise in the market.
Then I looked carefully and I was able to detect another key level which is acting as a support level to the market price.
This level has been respected severally by market price and it is expected to be respected again when market gets to it.
Also from the a above screenshot, we can see that this level has been rejected by market price, and the market has begun it move to the upside.
Inorder to see the market movement clearly I switched to the 4hr timeframe as seen above.
There are more noise in the 4hr timeframe than on the daily timeframe.
And on this timeframe, I could see the market movement more clearly, I could see the rejections on the market.
I expect to see the market retrace a bit to this support level before continuing it's move to the upside.
Then I move to the 2hr timeframe, for it is on this timeframe that I search for my entry into the market.
Also, on this timeframe, we can see some rejection candles which is indicating that the market is about to be bearish.
So I decided to apply the rsi indicator as a confluence to my trade
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.
I then decided to apply the rsi to the monthly timeframe just as seen above.
And from the above screenshot we can see that the rsi has crossed above it's 80% line and this is an indication that the market is being overbought.
An overbought market signifies a bearish trend reversal signal, and this is in alliance with my analysis using support and resistance strategy.
Moving to the daily timeframe, I noticed that the market is being overbought also.
And this is so because it's rsi is approaching it's 80% line, and when this happens, the market can be expected to embark on a bearish move.
I then decided to move to the 2hr timeframe in search for an entry Into the market.
I then moved to the 2hr timeframe and I saw the market clearly.
And then, I decided to enter a buy order from the support level closest to the market and I placed my take profit on the closest resistance 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.
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