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Hello everyone, How are you all doing? I greet you to the second week of the crypto academy trading competition. This week, we as well will be focusing on what we have learned so far from our previous lessons to carry out a real Crypto trade. I will be joining professor @reminiscence01 and @nane15 team of "Team Reminane".
In today's, I get to explain to you how I was able to execute a SELL trade order of DOT/USDT from Binance Futures Using the 15 min chart to identifies a trend, in addition to the EMA indicator as well.
I will also explain the token analysis(Fundamental and Technical) which I made before I carried out my SELL trade of DOT/USDT. HAPPY READING!!!
The Name of the token which I will be trading today is the Polkadot Token also known as DOT.
DOT token is the native digital currency of the Polkadot network, Polkadot network is a blockchain that allows interoperability of other platforms, the network was established in 2016 by Gavin Wood who was a co-founder of the Ethereum network.
Polkadot is a sharded blockchain, meaning it associates a few unique chains together in a solitary organization, permitting them to handle exchanges in equal and trade information between chains without forfeiting security. Polkadot was intended to give an establishment to a decentralized web of blockchains also called Web3.
The Network uses a Proof of stake consensus in reaching block validity which means the DOT token couldn't be mined. The uniqueness of the network is that it is fast, scalable, and easily adaptable to other networks.
DOT Analysis:
DOT token is currently ranked 11th on coinmarketcap, at the price of $18.85, and a market capitalization of $18,614,902,402, and the market has been up by +5.17% since the past 24hrs, DOT has a circling supply of 987,579,315 DOT, and a Total supply of 1,103,303,471 DOT while the Maximum supply is not available yet.
Polkadot can be traded on several exchanges which are listed in the order of top exchanges the coin has been traded below;
- Binance
- Coinbase Exchange
- KuCoin
- Kraken, and others...
My optimism regarding the Polkadot token comes with the fact that the coin has some serious project backing it, which led me to believe that Polkadot is a good investment which a future uprise of it could be expected in the future.
We could as well see the trading volume of the token to be $2,150,438,825 which is quite large when considered on any crypto asset, the coin is also ranked 11th which is good enough for any coin at its level, so I believe this gives me the edge of the optimism of the Polkadot token today.
I as well believed the Polkadot coin is here to stay, so the coin having a future rise is certain due to some analysts predicting the DOT to get to $50 in two years' time.
During my analysis, I will be basing the DOT analysis on support and resistance level. The first thing I did was to add an EMA indicator to the chart which I then adjusted the EMA settings to Length 50.
Afterward, I could see the ups and downs in the market, at the point of my entry, I had identified the two resistance levels and a support level. I identify the resistance level at the point where I witness the market started falling evenly and quit rising while I figured the support level at the point the market is about to stop falling and starts rising.
As seen from the image above, we could see that the market was about to get on another turn at the point we witness the market is about to break the resistance level, we can as well see a new movement from the EMA indicator as the indicator is about to start rising, meaning it's getting close to the price and about to break to the top. I took a decision to Sell when I witness the new market trend and I set my risk-reward in 50% profit and 50% loss i.e 1:1 RRR.
After getting my level of trade, I launch the Sell order on Binance futures of 10x!!! leverage, I entered the sell order at the entry price of $18.791, at the Take profit of $18.49, and a stop loss at $19.10.
Some minutes later, the market is now moving in my favor as I was already having an ROE of 6.12% with a profit of $0.11.
I went back to my chart, as you can see that the market is still moving in my favor which I am about to hit my Profit level soon.
Yes, I wouldn't mind the idea of holding the DOT token for long, but due to the current analysis I just took, I will be selling off the DOT token as seen that the token just breaks its resistance level and moves down which I did in other to make a profit.
The Polkadot token is a serious investment platform that allows the interoperable of other networks, Yes, I could recommend everyone to buy the token especially now that the price has reduced a little bit, we should note that the Polkadot coin has once gotten to the price level of $50 last year, which mean the coin can still do it again anytime sooner, but this is crypto, anything is expected to happen.
I had advised anyone interested in holding the coin should do their own research as the crypto market tends to always flip otherwise, so before making entry to buy and hold, it is best if they could wait a little while longer before taking a decision to purchase a large quantity of the DOT token and allow the price to dip a little more, despite that a future uprise is expected to occur before the end of the 2022 year.
The Official Polkadot website can be accessed from the webpage https://polkadot.network/, where we get to access the network technology, community, the whitepaper, and other useful information that could get anyone started with.
Here comes the conclusion of my analysis on the Polkadot network and its token, I was also able to get the fundamental analysis of the DOT Token which thus proves that Polkadot is a real investment one can plunge assets into as the coin is likely to increase in the future as it witnessed some strong partners with it.
Special mention to professor @reminiscence01 and @nane15, for carrying on the #teamReminane, it's an honor to be part of your team this week.
Steemit Cryptography Student: