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Hi all,
It's a pleasure to submit my 3rd entry for the trading contest this week as I will be using this opportunity to analysing the MATIC/USDT pair and then perform a sell short order. I have decided to continue with the Team-Investors team which is led by @pelon53 and @imagen for the trading competition this week
1. The name and introduction of the project token, and which exchange can be traded on, project/technical/team background, etc.
Today, I will be studying the Polygon MATIC currency as I will be applying both fundamental and technical analysis in other to predict the movement of this coin
Introduction To Polygon MATIC Project
Polygon was founded by two great developers of blockchain know as Janynti Kanani, Sandeep Nailwal and a highly recognize business guru known as Anurag Arjun**. The polygon is aimed at building a solid framework in other to interconnect different Blockchain networks together and it was formally known as the MATIC network but now it is hoping to address most of the Ethereum major problems such as it's poor user experience which because of how high speed transactions usually delay and the lack of the community governance by using a novel side-chain solution
Image source
This polygon was launch in October 2017 before moving to it's main network in 2019 and has contributed greatly to Ethereum ecosystem because they work on the Wallet connect protocol, the widely use dagger notification even engine in the Ethereum and the implementation of the plasma MVP on the Ethereum ecosystem.
This polygon is very unique because it is self-describe as the solution of layer2 scaling hence not seeking to upgrade their basic current blockchain at the moment. It is also unique because it has reduced the problem of both instant blockchain transactions and Scalability.
This polygon also use a modify plasma MVP version that is build on proof-of-state points that is running via the main chain of the Ethereum ecosystem hence enabling the polygon network to process over 65k transactions per block hence making it very unique
MATIC Exchanges
Screenshot from coinmarketcap.com
Polygon MATIC is quite popular because of how reset it has rised. It is well traded in so many exchanges such as Binance, Gate.io, Kucoin, FTX, Houbit and so many other exchanges. I have listed just a few as seen in the screenshot above
Screenshot from coinmarketcap.com
Looking at the screenshot above, we can see that NEO token is ranked #16 with a total supply of 7.56B MATIC, a market cap of $12,248,393,427 and a total volume of $1,471,592,999
Screenshot from coinmarketcap.com
From the screenshot above, we can see that this MATIC coin hit an all time high of $2.92 on Dec 27, 2021 which is just 2 months ago. Its time low $0.003012 which happened 3years ago on May 09, 2019. We can see that this coin is extremely doing well because despite the fall in most major coins, this MATIC wasn't really affected because it hit it's all time high just 2months ago which was a month most major coins were experiencing a high dip
2. Why are you optimistic on this token today, and how long do you think it can rise?
Screenshot from Trading view
From the screenshot above, we see why I'm bearish about this token because in the last 24 hours, this coin have been trading in a volume of $1,473,657,296 and it's current price have dropped to 7.56B MATIC which is down by +2.4% as compared to the previous day
So for now I think the market is falling which is a good opportunity for intraday trader like us to enter and execute Sell-Short order. Though the token is dipping at the time of writing, I still think it will rise again in days ahead because we can see how the coin have been in bull run until it hit it's all time high in December. Ever since then it has been dipping to a current price of $1.61 because of the dip in most coins.
But I will enter the market today and execute a sell order just for a short period of time because I Know it will rise in days ahead which is instead good for long term traders
3. How to analyze the token? (Using the analysis knowledge learned from professors’ courses
Sell-Short On |MATIC/USDT pair
I will still be using the knowledge which I learned from the professors in the steemit crypto academy by carrying out technical analysis using the tradingview.com official website then Perform my sell short order in my verified Binance account by doing future trade since I'm familiar with the trading system
I will still be using two TEMAs indicator (one fast and one slow) and the RSI indicator to carry out the technical analysis. I will be observing to see if the two TEMA indicator will cross each other from above at thesame time when the RSI indicator is showing oversold zone before I will execute my Sell-Short order
Screenshot taken from tradingview.com
From the screenshot above, you can see i successfully Identified all my major support and resistance levels.
After doing that, I then had to wait for the two TEMAs to cross each other from above so that I could execute my sell order
Screenshot taken from tradingview.com
After identifying the support and resistance levels I then had to use it as my stoploss and takeprofit points.
when I finally received signals of entry from the two TEMAs indicators as the fast TEMA (70) hadcrossed over the slow TEMA (30) from above indicating that it was a good position to execute my sell order, I then place a real Sell-Short order from my verified Binance account with an initial capital of $8.1 . I had to multiply it 2x for the sell entry. When I multiplied it, I discovered that I had a total selling power of about $16.2
After that i executed a sell order by choosing future trading as my entry was at 1.6475 with my 1st takeprofit at 1.620, 2nd takeprofit at 1.591 and my stoploss at 1.675. My Risk to reward ratio was R:R = 1:3
Screenshot from Binance
I waited patiently for about 1 hour then started experiencing progress in my trade as the price was still trending downward after few bearish candles then my 1st target was achieve which was a profit if $0.2590.
taken from tradingview.com
The screenshot above shows that my 1st takeprofit have been achieved.
Screenshot taken from tradingview.com
I realize that my 2nd target wasn't successful because the price never hit my target when I saw an emmidiate price reversal as the price started trending uptrend which was confirmed from the RSI indicator. The two TEMAs indicator also crossed each other from below hence futher confirming that there was a price reversal . But I had to exit my trade as fast as possible and successful won a profit of $0.0477 from that position
Screenshot from Binance
The screenshot above shows my trade details which indicates that I actually placed the right values as explained above
So my total takeprofit for this trade was $0.3006
4. Your plan to hold it for a long time or when to sell?
NO I don't plan to hold this token for a long time since I'm doing scalp trading because of how volatile the market is at the moment.
Since I'm an intraday trader, I had to look for a good opportunity in the market where I had to execute a sell order of the MATIC/USDT. My trade was successful because I had to exit the market by taking home my profit which means I never intended to hold it for long.
5. Do you recommend everyone to buy and the reasons for recommending/not recommending?
Recommending some one to buy this token is not actually advisable at the moment especially to the shirt term traders. Anyway, will Wil start by first of all giving advice to the person to carry out his or her own technical and fundamental analysis before taking a decision because every trader's ideas are never thesame and one may be successful while the other not successful.
But we should know that this MATIC token is seriously experiencing downtrend movement and it's moving towards a Fibonacci support of 61.8% hence it definitely shows that it has break the the previous bearish flag when looking it from the daily chart. But I believe it will retest back and start moving Uptrend and will surpass it's all time of $2.92 in future hence making it very important for Long term holders to buy and hold this toke.
But I will recommend hort term holders to not hold this token for now because of how volatile the market is as most coins are experiencing a very high dip in it's value
6. Other Information About The Polygon MATIC) token
Source fromFrom the screenshot above, we can see how the polygon network has rendered it's users with a very high secured, fast and efficient energy in the solution of the Ethereum scaling web3 developers hence making it unique for it's users
I'm happy because I have successfully come out with both fundamental and Technical Analysis on the MATIC token. After carrying out this analysis, I then had to take a Sell-Short position because of how bearish the market was at the time. I'm very happy because I was successful at the end after carrying out good technical analysis by using two TEMAs (fast and slow) together with the RSI indicator. My strategy work according to my expectations even though it never hit my my 2nd takeprofit profit positions because the price was about reversing when I closed the position with a profit of 0.0477 which is not bad because I went home with a total profit of $0.3006
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