Hello everyone, How are you all doing? I greet you all for this week 1 of the new crypto academy season diversion. This week, we will be focusing on what we have learned from our studies so far to carry out a real Crypto trading competition, where I get to explain to you how I was able to execute a BUY trade order on Binance Futures Using the Heinkin Ashi chart to identify support and resistance level, in addition with the SMA 20, and the MACD indicator as well.
I will also explain the token analysis(Fundamental and Technical) which I made before I carried out my BUY trade of ALGO/USDT on a 5 min chart.HAPPY READING!!!
The name of the token which I will be carrying my trading analysis today is the ALGO COIN.
The ALGO coin is the Algorand network community token, The Algo coin is used for staking, governing, and protection on the Algorand network. Algo coin holders can stake the tokens on the network to ensure they reach the validity of new blocks on the network.
The Algorand Blockchain is an open-source blockchain that maintains the arrangement of dApps and Defi on its protected, adaptable blockchain. This is the uniqueness of the blockchain as it holds a high-performing and secure blockchain which appears to have brought issues tackled to the blockchain trilemma as this blockchain compromises the three blockchain elements, i. e, it is Decentralized, scalable, and also a secured Blockchain organization.
The Other uniqueness of the organization is that it uses Pure Proof of Stake whereby the block validators are chosen based on random numbers not like the PoS where the Highest holder win consensus, the ALGO also boast of running 64,000 transactions per second, with all this we could see the true potential the network as to do with the $ALGO coin.
ALGO Token Analysis:
Algorand is currently ranked 29th by the top on coinmarketcap, at the price of $0.8437, and a market capitalization of $5,600,795,169.39, and the market has been up by +4.83% since the past 24hrs, Algorand has a circling supply of 6,618,903,816 ALGO coins, and the maximum. supply of 10,000,000,000 ALGO with a Total supply of 7,056,198,443 ALGO.
The Algorand Coin can be traded on several exchanges due to its popularity in the crypto world, I will be listing the top exchange the coin can be traded below;
- Binance
- KuCoin
- OKX
- DigiFinex
- FTX
- Mandala Exchange ...and others as seen in the image below;
The ALGO coin is paired with several crypto coins and fiat currencies depending on the exchange, as seen in the image, we saw ALGO/USDT, ALGO/BUSD, ALGO/BTC, ALGO/EUR, and others...
My optimism from Algo coin comes from the network scalability, ever since have taken a course in the SCA regarding the Algorand blockchain and how the Algorand blockchain has tends to solve the blockchain trilemma as the network is fully decentralized and fast unlike we have ever seen, have always been interested in possessiveness of the Algorand coin one day.
But the other actuality is that many networks as well have tended to bend with this idea as many blockchains now have a way of solving the trilemma using Layer 2 solution and others, but still the optimism of a rise in Algorand coin has always been there due to its being the first to solve the blockchain trilemma.
My other good faith started from the technical analysis of the ALgo market today, as I saw that the coin has been up by 4.3% also tends to catch my interest in possessing the coin, then at the instance, I saw that the coin is about getting up to a new level I initiate a buy order to make profit with the market movement.
To analyze my entry in the Algo coin, I use the tradingview chart of Binance on a 15min frame, where I did change my chart from its defaults candlestick to the Heikin Ashi chart so I could be able to visualize the support and resistance level. After I was able to figure out the support and resistance level I drew a trend line evenly across the levels, to be able to see the repetition of the market movement on the chart.
I also added the Simple moving average(SMA 20), then I was able to see the position in which the market is moving as it tends to depict a bullish trend as I could see the SMA traveling below the market price, to confirm my position, I added the MACD indicator which I am always confident with, on the MACD indicator, I saw that the market has broken the zero line to the top, at that moment, I tend to have more courage in the market which is why launched a Buy order and set my profit level at the last resistance level and my stop loss below the entry in the ratio of 25% loss and 75% profit.
After getting my levels of trade, I launch the buy order on Binance futures and select the 8x!! leverage, I bought $ALGO at the entry price of $0.8446, at the Take profit of $0.8528, and a stop loss at $0.8430.
Some minutes after my buy trade execution the market is now moving in my favor as I was already having an ROE of 1.13%.
The trading details can be seen in the image above.
Yes, I do plan to hold the Algo coin for long as I already have some Algo in my possession, due to the running task, I am only utilizing the little I have here as part of the trading contest whereby I only engage it to carry on the trade on futures.
Holding the ALgo for long would be the best idea as the coin has some credibility of showing great fortune in the future despite that the coin has also been down for some couple of months as we saw the price to be down to $0.1 we have also seen the price to gone up to the price of $3.5 last year, so with predictions, Algo coin is expected to reach the value of $10 in the years to come, so I would believe the idea of holding the Algo as a nice idea.
Yes, it is in a high recommendation that I will ask others to own this coin, as this is one of the great coins to have in a wallet for a long position, we could as well see that the coin is ranked 29 on the coinmarketcap list of coins, it is also recommended as the coin price is not up to a dollar will be the best time to buy and hold for long-pending the time the future rise might come.
You can as well buy the coin to be able to participate in the Algorand defi, as it is of certainty that every user who owns % of the ALGO coin get to validates a new block as the Algorand blockchain uses random numbers to choose the number of validators not the ones with the highest possessiveness of its coin.
Users can as well hold the coin on the off chance that they are interested in participating in governance on the Algorand network.
The Algorand blockchain boast of processing transactions as fast as we have ever seen in a fully decentralized network, where the platform process transition as fast as possible in 64,000TPS, the Algorand also has a lower transaction fee where users get to burn little Algo token when making an exchange or any other priority that involves burning the $ALGO coin.
From the website Link we get to explore the Algo network as we get to see the latest block validated, transactions overview, The ALGO TVL, and other useful information.
Here comes the conclusion of my trading setup using one of the strategies taught by the SCA professors in analyzing a crypto token.
I was also able to get the fundamental analysis of the ALGO coin which thus proves that the ALGO coin is a real investment that one can plunge assets into as the coin proves the fact of future increment.
Special mention to professor @shemul21 for carrying on the #teamfrontline, it's an honor to be part of your team this week
Steemit Cryptography Student: