Hello crypto enthusiasts, this is a new week of the crypto academy contest, we are being required to analyze a token and carry out a real trade using the analysis we have gotten from the previous classes, I will be analyzing the IOTA coin.
For week 4, I will be joining the trading contest team of professor @pelon53 on Team Investors, here is my contest entry.
The coin I will be analyzing today is known as the IOTA coin.
The IOTA projects aim to blend the usage of the Internet of Things to the blockchain network, whereby allowing users to perform internet-related transactions with the platform provided they are interfaced with the network. The IOTA network has tended to bring flexibility between crypto and the internet of things as the network can easily collect internet data and make an automatic payment activity with the platform, the uniqueness of the IOTA coin is that it is not mined, so thereby there is no transaction fee for the transaction made on the IOTA platform.
The IOTA project was created in 2014 by four different co-founders, we can not totally refer to the IOTA project as a blockchain but it is partially a blockchain as well, the platform is blended with the modified electronic device to easily interact with internet transactions, the IOTA uses the same consensus as bitcoin, but the mining power is relatively low as the coin is mined within individuals on the platform in other to keep the network safe.
The IOTA coin is the native coin of the IOTA platform, the IOTA coin is also rewarded to users who participate in keeping the IOTA network safe, the coin can also be used for staking and participating in governance on the IOTA platform, the IOTA coin is used for making a payment with the Internet of Things devices.
The IOTA token can be traded on most exchanges, Top exchanges that traded the IOTA coin are shown in the image below.
I am bullish on the IOTA token today due to its movement in the past days as the coin has been showing a great recovery from the dip and it is showing a possible bullish movement, the coin has moved from $0.84 to $0.89 in the last hours which shows that it might be a possible and a good position to buy since there might be a new bullish movement from the coin.
The IOTA token has had a 24-hour trading volume of $55,564,557.66 which shows there are more activities in the coin as the coin is now showing a bullish means there is a probability of the coin being catchy to other investors.
I will b carrying the analysis of IOTAUSD on the 15 min chart, where I was able to identify the support zone and the resistance zone, after forming these levels, I get to notice that there is a consolidated movement in the IOTAUSDT market has market been moving between resistance and the support zone.
At the resistance zone, the market quit rising and it falls to the previous low, while at the support zone, the market refused to drop and rises back to the previous high, the image shows the resistance and support zone of the IOTAUSDT market.
I added the EMA 15 indicator to support my entry, the EMA 15 is a short-length indicator that best works in a short time frame market as the EMA was traveling above the market price giving confirmation to my entry and showing that the market is currently a sell trade.
From the chart, I was able to get my entry to sell at the moment the market is below EMA showing bearish, the order was executed at a 1:1 risk-reward, the stop loss was set below the resistance zone, so if the market went back to the resistance level, my loss level would at least be minimized.
I took my trade at the entry to sell price of 0.8691USD, the take profit 0.8540USDT, my stop loss at 0.8803USDT.
A screenshot of the filled order can be seen in the image below.
Yes, I do plan to hold the IOTA coin for long but not with this trade, the IOTA coin has been recovering and possible a bullish movement might be seen in the future, but right now due to my trade I was able to identify the market to be traveling in an uptrend which is why I pick a sell position.
So to justify my answer, I would prefer not to hold the IOTA coin for so long rather than trade it at Isolated 21x leverage on a 15 minutes trade and make a profit and fall out as quickly as possible in case the market goes the otherwise of my intraday trading.
Yes, I would recommend everyone to buy the IOTA coin when it is still bearish with the hope of the coin recovering and hitting $1 very soon, the IOTA coin might not be too safe to purchase, but instead, I had advised everyone to risk buying the amount they can afford to lose, thou the IOTA coin did it ATH at the price of $5 a year after its launches, but we have not seen such movement since the pas due to drop in the team member then, but rather for a couple of days now, the coin has been recovering and a bullish market has been detected.
The IOTA coin has some great advantages as it is generally accepted as a mode of transaction with no transaction fee and the coin is used as an electronic payment on our devices, so having the coin still comes with day-to-day use activities.
In this write-up today, I have analyzed the proper trading setup for the IOTA coin where I execute a sell trade at the point I witness the coin to wants to consolidate and ranging between the support and resistance zone, I was able to confirm my entry with the help of EMA indicator as well as I took the decision to sell when I saw that the market is now traveling below EMA which confirm a downtrend market.
CC:
@steemcurator02
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