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Hello fellow steemians, it is indeed the last day of the Steemit CryptoAcademy season 6. What a wonderful season it has been amazing features and new facets. This is going to be my last post for the season and I want to thank all the professors for the knowledge impacted in me.
Today I will be talking about my last crypto trading and it is a new coin. The EOSUSDT pair.
EOS is yet another unique Decentralized Blockchain platform that is geared towards the creation of Decentralized applications commonly called DApps. The platform was designed for the development of
DApps.
The objective of the platform is relatively simple, to make it as easy as possible for developers to adopt the Blockchain technology and so the platform provides educational facilities and tools to programmers and developers to easy the whole process.
The EOS platform was developed in 2018 by the company Block.one. its white paper was written by Daniel Larimer and Brendan Blumer. Brendan Blumer is the CEO of Block.one while Daniel larimer is the CTO.
EOS is also the currency that is used to run the EOS platform. At the time of this post, the following information was true about the token.
Price: $2.92
Marketcap: $2,876,550,259
24 hours Volume : $533,846,965 and
Circulating Supply: 985,808,093.28 EOS
You can buy EOS in the following exchange platforms:
- Binance,
- OKX,
- CoinTiger,
- Bybit, and
- DigiFinex just to name a few.
In this part of my post, I will to explain some reasons that I feel very optimistic about the project EOS
Recent boom in DeFi applications and NFTs . With the recent boom in the NFTs Market, EOS offer developers the platform to develop DApps and NFTs at relatively simple ways. With it's vast platform of resources for creation of DApps to programmers this will attract alot of programmers to the platform to monetize their technology and I think it will serve as an attraction to developers.
Recent Growth. Just over 4 years of its existence, the price of EOS has experience a tremendous growth in terms of price. Not all Blockchain have been able to realize this growth. It is therefore one of the reasons I believe in the continuous growth of the platform.
Thirdly, I was optimistic about the growth in the price of the currency after the technical analysis I carried out. It was obvious that the coin was going to rise some few cents and that's why I decided to trade the coin.
In this section I am going to show the technical analysis I did on this trade that made me to be able to open a buy trade.
Using Resistance and Support levels.
For the trade Analysis, I decided to use a price action analyses. The Support and Resistance are pattern Identification strategy. So what is Support and Resistance.
Support and Resistance levels are areas on a price chart where by price of an asset is expected to pause and reverse in an opposite direction.
Support level is usually the level on the chart where price of an asset that was Falling bounces and return to an uptrend movement while Resistance levels usually ends an uptrend. It is that price level where rising prices are expected to pause and return to a downtrend.
The Resistance and Support level usually serve as trend reversal signals. That's is areas where price has been noticed to reverse and so it is important to know these levels. A buy trade can be identified when price reaches the Support level while a Sell trade can be identified when price reaches the Resistance level.
So on this post we are concentrate with a buy trade and so have to identify an area of support on the price chart. Using Tradingview platform for my analysis, I could Identify an area of both support and resistance. Price had Bounce off both the Support and Resistance zone. And since price was in an area of support and resistance,I could see that price had just bounce off a support level and was in an uptrend and so this was a good point to enter a buy trade.
For further analysis, I decided to analyse the Strength of the Support using different timeframe as seen below.
1 hour timeframe
2 hours timeframe
4 hours timeframe
As can be seen from the screenshots above using 3 different timeframe, you can see that price has bounce off the support level and is in an uptrend. So I decided to open a long position placing my Take profit at $3.070 and Stop loss at $2.7. Screenshots as seen below.
Looking at the trade graph of the EOSUSDT chart on you can identify that this area is a temporal area of Resistance and Support levels. And so I expected the the rise in price will be a short term before it reaches the Resistance level. And so I plan on holding the coin for a short term reason why I am using the short Timeframe of 1 hour, 2 hours and 4 hours.
However, to manage my risk I inputted an exit Strategy. Meaning anytime prices reach this points my trade will be stopped.
But I do plan on buying and holding the currency for long in future.
Yes I am going to recommend this currency for every one to buy for the following reasons.
Past performance. Considering the past performance and growth rate of the coin,I do strongly believe it is a good currency for the future.
Also, one of the main reason that accounts for the rise in this currency is the flexibility it brings to the creation of Decentralized applications. It low cost of transaction and high performance speed is a good reason for investors and developers to adopt the platform.
With the recent boom in the DeFi and NFTs application, EOS is going to see Increase use of its platform and thus increase in price.
To conclude, the EOS is a pretty amazing currency with unique advantage to developers. It offers developers the opportunity to creat applications easily on the platform. With this the platform stands at a good position to explore the rising DeFi and NFTs market.