I will make my 5th participation with REEF/USDT this time and with a detailed overview of its fundamental and technical (trading) analysis. Let me trek you about REEF.
OVERVIEW OF REEF
REEF is one of the promising coins in the crypto sphere with good foundations. However, Reef is a short name for "Reliable Extensible Efficient Fast". That's
√R = Reliable
√E = Extensible
√E = Efficient
√F = Fast
Indeed, it has the characteristics of its name Reliable Extensible Efficient Fast as it offers high scalability, low transaction costs, does no wasteful mining, is very fast and support solidity and Ethereum Virtual Machine (EVM), as such, authorizing creators to seamlessly leave their DApps from Ethereum without any alteration in the codebase.
Generally, Reef is an Ethereum Virtual Machine (EVM) compatible community for DeFi, NFT & Gaming created with Substrate Framework and comes with on-chain governance. Also, the REEF system operates on a Nominated Proof-of-Stake (NPoS) consensus mechanism.
In the REEF blockchain, the native token is called REEF and is used for gas fees for processing transactions and storing data. To nominate and run validator nodes, staking of REEF token is needed.
Nevertheless, there are lots of numerous leading fund and investment tycoons as such as Kenetic Capital, Bitcoin.com, Krypital Group, TRG Capital, Genesis Block, Woodstock Fund, LD Capital, and others supporting the REEF network.
Reef was established by a developer called Denko Mancheski. He created Reef to provide a solution for retail investors who want to get involved with new concepts such as DeFi, NFTs and Gaming. Currently, Reef has authorized retail investors to grab the advantage of high scalability and low fees.
Reef Chain is a smart contract blockchain, built to make DeFi, NFT and Gaming easy for everyone. So, to participate in Reef chain validation and governance you have to Bond and stake your REEF tokens and in return earn rewards.
WHERE TO PURCHASE IT
We can purchase Reef on Binance, FTX, Hotcoin Global, Mandala Exchange, and CoinTiger. It has also lived listed on Gate.io and Bitfinex. It can also be purchased through decentralized exchanges such as 1inch and Uniswap.
I trade REEF/USDT on Binance Exchange and as of 2020, the Binance exchange platform offers the largest number of pairs granting trading against USDT, BTC, and BUSD, whereas Huobi Global also gives Bitcoin (BTC), Ethereum (ETH) and Tether (USDT) alternatives. So, make your research before choosing an exchange.
Why am I optimistic about this token today, and how long do I think it can rise?
As of the time of writing, Reef's price is $0.009166 with a 24-hour trading volume of $50,783,321. Reef is down 6.14% in the last 24 hours with the current CoinMarketCap ranking of #266. A market cap of $167,565,244 with a circulating supply of 18,280,715,935 REEF coins and the max. supply is not available.
The statistics data for Reef is gotten from CoinMarketCap
As of the time of writing, REEF has a circulating supply of 14,807,552,172 tokens while 38.2% of the Reef Chain supply is staked. Reef Chain today has over 23 validators. The current inflation of the supply is 8.3% with the price of $0.009166.
So, If REEF breaks and holds the $0.010526 area then we see an upward move which means the price will be above $0.011. As such it has a sharp chance to rise above the current price.
MY REEF/USDT TRADE ANALYSIS
I will analyse REEF/USDT with the aid of EMAs, Parabolic SAR, and Price action strategies with a Multi-timeframe just as I did on my last trade that result in a positive trade.
Technically, REEF was in a downtrend which reversed to upward movement as an outcome of that formed an inverse Head & Shoulder pattern. However, the EMAs and SAR are in line with the price but the price seems to break and move above the EMAs and SAR. If REEF is breaking and holding above the $0.010 area then we see an upward move.
Thus, the first support is $0.0089 where the price breaks and is made impulsive before moving downward to form major support around the $0.0080 area. After the trend reversal occurred, the price moved upward and later pull-back to retest the first support around $0.0089. This makes it vital support as such a buy entry can be found in that area.
I placed my entry, but no tight stop-loss and I can't risk a stop-loss of 5.49% despite seeing a useful entry. This took me to a smaller (lower) timeframe of 1H.
On the 1H REEF chart, the EMAs and the SAR are above the price which signals a downtrend but there is formation of green candles and the presence of a hammer which indicates trend reversal is about to occur. Well, I didn't make any decision because it's not clear yet. Thus, I was unable to locate any entry then I went to a lower timeframe of 15Mins.
On the 15Mins, I observed the price has broken the EMAs and the SAR is below the price which means an uptrend and signals a buy. That's the price is above the EMAs and the Dot (SAR) is below the price showing a potential bullish trend formation. Since the price move above the EMAs and the Dot below the price, it signals to buy entry. Well to confirm the signals from both indicators (EMAs & SAR), I checked the price action strategy when I noticed the price has failed to break the support around $0.0095 and the price has retested it three times. Though the last one breaks it a little, it's a valid support level.
Then, I jumped in with an entry of $0.009645 for a quick profit in short term 😊🚀
Targets: $0.009813 and Stop-Loss $0.009488.
After my prediction, I went to my Binance account and made my entry and opened a long (Buy) position as usually. I have carried 6x Leverage on this position. Checking it, I observed it has filled the Take profit which means 😏 I won again 😊😁.
Below is the trade transaction details.
Your plan to hold it for a long time or when to sell?
I traded with Margin (Futures), and holding is unusual. So, I will take an exit on the real chances. Possibly, if it was Spot, buying now is a realistic chance, as such, I will hold it for a long time and wait when it appreciates at least $1 then will sell it.
MY RECOMMENDATIONS
Reef Chain is a smart contract blockchain, built to make DeFi, NFT and Gaming easy for everyone. However, Reef is still a penny or sheet coin, so, I can confidently suggest you (spot traders) buy it and hold it until it rises but always take entry and exit at a good time.
Nonetheless, trading with a margin (Futures) is suitable to make use of good strategy and proper risk management as the market is full of volatility and risk. So, I recommend you use a good strategy and proper risk management. If your strategy is not yielding good results, I recommend you look for a better one.
Other Information about the TRB Token
For more information about Reef, you can visit official whitepaper, Official Website and know the Statistics of the data of the coin, visit CoinMarketCap
CONCLUSION
Trading with margin (Futures) is full of risk and the market is full of manipulation as well as volatile in nature, so make use of suitable strategy with proper risk management to reduce losses.
However, always ensure you do your fundamental and technical analysis before placing any trade.
THANKS FOR READING THROUGH
Cc:-
@fredquantum
All charts images were gotten from the Tradingview
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