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Hi all,
It's a pleasure to submit my 3rd entry for this trading contest today. I will be analysing the ALGO/USDT pair after which I will perform a sell order and I will still continue in the Reminane Trading Team which is let by professor @nane15 and @reminiscence01
1. The name and introduction of the project token, and which exchange can be traded on, project/technical/team background
Today, my 3rd entry will be on the Algorand(ALGO) project. In this project, I am going to be applying both fundamental and technical analysis in other to predict the movement of this crypto currency at the current market situation
Introduction To The Algorand(ALGO) Project
Algorand is a Decentralized self sustaining blockchain that was launched 5years ago in 2017 by a great computer professor called Silvio Micali. After the introduction in 2019, it finally gained it mainnet in 2019 as it's token (ALGO token) was officially launched which could be traded across several exchanges. It's a Decentralized Blockchain that is based on all network that usually assist quit a good number of Blockchain applications
The aim of this Algorand blockchain is to enable transaction to be extremely very fast and efficient as compared to the initial transaction in the Bitcoin and other blockchain types which are slow and less efficient at times. One good thing that make this Algorand blockchain so unique and efficient is the high level of security, flexibility and Scalability it offers to it's users. It usually helps to create trust within a Blockchain by supporting it's computing performance.
It was launched on the 01-06-2019 as an initial coin offering with an ALGO price of $2.4 then later hit an all time high of $3.28 21 days later. It was launched to help improve the on Scalability but not forgoing decentralization as it was also aimed at improving it. It's features functions as pure proof-of-state mechanism hence chosing it's validators as they stake their ALGO token in the Blockchain. The purpose of the Algorand blockchain is for payment process to it's users since it was created and design to act as payment processor when users stake or Carry out transactions.
The screenshot above shows that the Algorand blockchain have launched recent projects so that it's users can explore and make good use of it
This ALGO token can be used as staking so that users can be chosen as a block validators propers, or it can be used as a non-custodial wallet where by users can recieve rewards at any moment a new block is added to the Blockchain. This token can as well used gas fees transactions when using the Algorand network and it has a very low fee as compared to ERC-20, BEP-20 and other network types
ADA Exchanges
Screenshot from coinmarketcap.com
Currently ALGO can be traded on Binance, Huobi, Bitfinex, Kucoin, Coinbase and so many other exchanges but it's highly traded but in Binance which is also the exchange I will be using to trade this coin for this particular task
Screenshot from coinmarketcap.com
Looking at the screenshot above, we can see that the ALGO token is ranked #30 with a total supply of 6.63B ALGO, a market cap of $5,404,251,111 and a total volume of $285,954,546
Screenshot from coinmarketcap.com
From the screenshot above, we can see that this coin hit an all time high of $3.28 on Jun 21, 2019 which happened 3years ago. Its time low $0.1024 which happened to be 2years ago on Mar 13, 2020. Looking at the chart and the project behind this token, i can say that it has a prominent future and it is predicted to hit a new all time high in future which will then break the resistance level of the all time high
2. Why are you optimistic on this token today, and how long do you think it can rise?
As I earlier said, this token is used as staking where by users can be selected as block validators and it's blockchain also act as non-custodial wallet as users can be rewarded any time when there is a new blockchain hence making this token have a prominent future hence a good token for long term holders.
Why I'm bullish about this token today is because in the last 24-hrs, we can see that this ALGO token has an increase in total supply capital of 6.63B ALGO, a market cap of $5,404,251,111 and a total volume of $285,954,546 as compared to the previous days
From the screenshot above, It shows that this coin is on a major bullish trend which further made me to place a long order in the market so I will be taking advantage of the bullish movement to enter the market and place a Buy-Long order
3. How to analyze the token? (Using the analysis knowledge learned from professors’ courses
Buy-Long On ALGO/USDT pair
In this task, I am going to carry out a technical analysis with this pair in tradingview.com at different timeframes with the help of the parabolic Sar together with EMA and Volume indicator after which I will initiate a real trade on my Binance using future trading
I would be observing closely when ever I see both the EMA-50 and the dots from the parabolic Sar indicator will be trading uptrend at thesame time when price is also trading uptrend and moving above both Sar indicator and EMA-50. At thesame time, they will have to be an increase in volume. Once all this is confirmed, I will then execute my buy order
ALGO/USDT 4-Hour Chart
From the 4-hour ALGO/USDT chart above, we can see the major support and resistance levels and we can see that the coin is generally trending upward. I will have to move to smaller time frames so that I could find a much more tighter stoploss
ALGO/USDT 1 Hour Chart
From the 1-hour ALGO/USDT chart above, the price was still trading upward indicating buy signal. I will still move down to Shorter time frame
ALGO/USDT 15-Min Chart
From the 15-min ALGO/USDT chart above, I was able to identify a good buying position because the price of the ALGO/USDT was trading above EMA-50 which I then confirmed it's movement from the dots of the parabolic Sar as it was also trading below ALGO price uptrend. I also noticed that there was an increase in volume. I then had to identify both my support and resistance levels so that I could use as my target and stoploss
I executed my sell order on my verified Binance App which I choose future trading by taking by my entry at 0.8207, with my takeprofit at 0.8510 and a stoploss at 0.7990. My Risk to reward ratio was R:R = 1:1
My running order of the ALGOUSDT pair
After a few hours, I started experiencing progress in my traded as seen below
The screenshot above is my trade progress
4. Your plan to hold it for a long time or when to sell?
NO I'm not planning to hold this token for long since I am a scalp trader. This coin is seriously on a a Dip now, however, I had to execute a buy order because of the advantage I had when I entered the market because it was on a temporer overbought zone zone. This is why I never intended to hold it for long.
From the ALGOUSDT above, you can see my takeprofit and stoploss positions, they are very short and once any of my position is hitted, I will have to exit the market
5. Do you recommend everyone to buy and the reasons for recommending/not recommending?
Though I bought this token today, I won't still recommend any one to buy it because of how volatile the market is. So buying this token will be very risky especially to scalp traders. However, this is not a financial advice but it's rather an advice to do your own research and findings before you can enter the market to buy this coin if should incase you also see an opportunity just like I did.
My recommendation for everyone is to that you should always do your own personal research and also carry out a technical analysis before entering into any trade, and make sure you always take your risk management criteria into consideration before placing any order by taking into account a proper stoploss to ensure your account from being blown up entirely if should Incase your trade fail you.
This is my 3rd trading practice today and once again, I had successfully come out with fundamental and Technical Analysis on the ALGO currency. I'm waiting patiently that this coin should hit my takeprofit so that I can completely exit the market because i don't have any intentions of holding the coin for long
CC
@nane15
beautiful this post! I am not an expert, but from the graph you have analyzed it seems that the ALGO token can grow in value from here on.
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Yeah exactly that's true friend. The ALGO token has a very solid project and a clear roadmap. So I think not long from now, this token is going to skyrocket the crypto market
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thank you for this exchange of views on ALGO
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You are much welcome @stefano.massari
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