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Hello fellow steemians, crypto academy students and esteem professors. It is another exciting week of Trading contest and to belong to Team Frontline headed by professor @shemul21 and @abdu.navi03 . Today I come to talk about by first trading for the week. My trading pair is SHIBUSDT.
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SHIBA INU
Shiba Inu is a unique decentralized crypto currency that's runs on the Ethereum Blockchain. The Crypto currency was named after a breed of hunting dogs in Japan and has resulted to be a dog loving currency. Base on the information gotten from the Shiba Inu website, Shiba Inu is referred to as the DOGECOIN KILLER as it is strongly considered to a be a good replacement for DOGECOIN.
Shiba Inu just like Dogecoin, is a a meme coin associated to the Shiba Inu hunting dogs in Japan. The following are the fundamental founding principles of Shiba Inu.
- The Shibu Inu project is a zero project that started from zero, with zero all in the process of building something truly unique and out of nothing.
- And unlike most currencies, it was not founded on any existing community. That's why the above principle says started from zero and out of nothing.
- The shiba Inu currency is all about professing and showing love to the Shiba Inu hunting dogs.
The project was created in August 2020 by an Alias called Ryoshi. The Identity of the person is not known. The Shiba Inu is an ERC-20 token. The Shiba Inu ecosystem consist of 3 tokens,
- SHIB, the currencies foundation token
- LEASH, which represents the other spectrum of the currency and
- BONE, which fits in-between the two currencies.
At the time of this post, the price of SHIB was
Price: $0.0000231
Rank: 15
Market Cap: $12,681,515,672
24hr trading volume: $1,049,288,952
Circulating supply: 549,063.28B SHIB
Here, I will be talking about why I am optimistic about tye Shibu Inu project.
Meme coin with a Dog theme(Shiba Inu). Dogs are one of the most loved animal in the world. And that's why Dogecoin Which is a dog coin has gained so much grounds. The love of dogs which is one of the principles of Shiba Inu project is a big reason why the currency is loved and has a huge fan base called SHIBArmy.
Crypto influencers. Elon musk who is also called Godfather of Shiba Inu has had alot of influence on the growth of the coins. Tweets from Elon musk backing Shiba Inu has had a huge impact on prices. This is one of the reasons I am optimistic about the coin.
Rise in prices. Since the creation of Shiba Inu, it has had amazing growth rate. In October 2021 it had a tenfold increase in price making it All Time High. Although it has experience a fall in prices in recent days following the fall in price all crypto currency. However, I still strongly believe in the project and currency.
In this section I will be discussing the technical analysis method that I used to analyze and trade this token.
Using Stochastic indicators to identify trading opportunities of SHIBUSDT
Why I choose to use Stochastic indicator
Ranging/Sideways phase
The first thing I noticed on the chart of the Crypto currency pair is that the market is in a ranging form. The market is neither in an uptrend or a downtrend. Usually the Stochastic indicators.
Now the Stochastic indicator is a good momentum indicator that identify trend reversal position in a region market. The indicator shows overbought and oversold positions on a price chart. The Stochastic indicator has a number range from 1-100. When the Indicator is above the 80 line, this is an overbought zone and a trend reversal to a downtrend. And when the Indicator is below the 20 line, it is an oversold zone and a bullish trend reversals. Using the Stochastic indicator, buyers can identify entry and exit points on a chart. Now let's look at the chart of SHIBUSDT below.
1 hour Timeframe
2 hours Timeframe
4 hours timeframe
I decided to used multiple timeframe analysis of the Stochastic indicator. I used the 4hours, 2 hours and one hour timeframe. Looking at all the timeframes, we could see that price was in an oversold zone. As we earlier said, when price is in an Oversold zone, it signals a bullish trend reversal.
To further confirm, looking at the 4hours and 2 hours chart, the was a formation of a bullish candlestick, this enhance the already existing Signal and so I decided to place a trade following the Take profit and stop loss points as can be seen on the chart.
Take profit:$0.00002454
Stop Loss: $0.00002167
Looking at the trading strategy and timeframe I used, the 4 hours, 2 hours and 1 hour, the it shows that I am not a long time trader.
So on my intentions on holding the coin, I plan on holding the coin for about 6 to 12 Days. However, my exit strategy has been set and so at any time the price hits my exit level then I am out of the trade.
Yes. I am going to recommend that everyone buys and holds Shiba Inu.
Growth rate. One of the main reasons that I will advice that every one buy the Shiba Inu coin is based on the growth rate. Ever since it's launched in August 2020, the price has skyrocketed making it All time high in October 2021 just one year after. I believe this growth will continue in future.
Crypto influencers. As I earlier mentioned, the Godfather of Shiba Inu is no other than Elon musk. His backing of this coin is a strong ground for the continuous growth of the currency.
Recent interest from investors. Since it's launched, there have been soaring interest from investors about the currency. This is a strong reason for growth.
Completely Decentralized. Shiba Inu tries to showcase the concept of Decentralization. It is a coin for the community as it is operated by the SHIBArmy.
To conclude, we can see that Shiba Inu is a pretty great currency with tremendous growth and statistics since it's launched. It is a community project that was build from zero and has a great prospect for growth.
As can be seen from the explanation above, the Shiba Inu was in a ranging market and I decided to use a momentum Indicator to analyze the chart. So looking at the chart and signal, I decided to open a short position. I hope the trade turns out to be a great choice