srcAnother entry for the ongoing trading competition on Steemit see me report on one of my most successful trades in a very long time. Very few things better proper analysis and proper setups. This trade had the potential to give more but I didn't want to over-shoot the runway.
Here's How I made huge profit on Solana (SOL) in one trade I entered with $51
First, AN OVERVIEW OF SOLANA
Regarded as the Ethereum killer, Solana is a rebranded version of programmable blockchain that offers DeFi solutions using blockchain technology. This blockchain is highly efficient in terms of speed and throughput, it brings another dimension of transaction efficiency to the crypto world.
Having gained recognition though coming after most projects in 2020, the blockchain developed by the Solana Foundation based in Geneva, has soared above many of its predecessors and become a trail blazer in the 'highly efficient blockchain' circle. Imagine the co-founder of Cardano, a programmable blockchain founded in 2017, recently promising that Cardano will attain Solana-like efficiency
FOUNDER
Talking about Solana's origins, Anatoly Yakovenko is the name that's often mentioned. He started off as an employee at Qualcomm before rising up to the position of Senior Staff Engineer Manager. He later went on to be a Software Engineer at Dropbox.
Anatoly started up a project and involved a former employee of Qualcomm - Greg Fitzgerald and with him he founded Solana Labs. The project became quite interesting and more Qualcomm employees joined and the formidable Solana project was released to the public sometime in 2020.
Anatoly has a Bachelor of Science degree in Computer science from the University of Illinois at Urbana Champaign. He also had a stint at Mesosphere where he was a software engineer. He's been in the field for long enough to come up with a formidiable project like Solana and has a vast experience in the software space. Just check his LinkedIn profile below:
Screenshot taken from LinkedIn
Here's him also on twitter
Screenshot taken from Twitter
He preaches DYOR which is short for Do Your Own Research. As can clearly be seen on his Twitter profile, he advises that his retweets and follows should not be considered as endorsements. Every crypto user should do their own research.
TECHNICAL BACKGROUND OF THE PROJECT
Solana is a hybrid blockchain. It incoporates the novel proof of history consensus mechanism and also utilizes the very common POS. With proof of history, a great deal of time is saved as transaction time is hashed to give a verifiable sequence of transaction with respect to time. This concept was developed by Anatoly Yakovenko and it makes the Solana protocol very scalable and thus very usable.
Solana was designed to meet the needs of small and big investors alike who would fancy the idea of really fast but cheap transactions. As such, it ensures that the working conditions on the network remains constant. Solana has very short transaction time and very short smart contract execution time making it a haven for dApps deployment.
So massive has been the adoption of this blockchain that it has experienced several cases of outages as a result of overload. It's not the only project to be this unfortunate though as many centralized institutions like Facebook have faced this temporal holdup.
WHERE TO BUY SOL
Solana is one of the most popular coins in the market today. It can be gotten from so many decentralized and centralized exchanges. I got mine from Binance but you can also do so on Coinbase, Huobi Global, FTX, Kraken, Kucoin, Gate.io, ByBit, etc.
WHY I'M BULLISH ON THIS COIN
Solana passes for a utility project by all standards. With more and more projects being deployed on the blockchain it's not difficult to foresee a brighter future for this project. It offers scalability and throughput, two provisions that serves as catalyst for boosting DeFi. The outages experienced in times past is a testament to the massive adoption of the blockchain.
It's all time high is within the region of $216.
TECHNICAL ANALYSIS
Here's why I entered this trade. On the 1D timeframe I observed a falling wedge pattern and a breakout above this pattern. This breakout was followed by a retest.
Screenshot taken from Tradingview
The retest formed a support above the falling wedge pattern indicating a strong move to the upside.
Screenshot taken from Tradingview
On the 1D timeframe, price broken above the 21EMA and retested it, effectively turning it to support. Whenever this happens and EMA50 is just above, it's usually an indication that price is aiming for higher grounds. Especially when a 3 months falling wedge pattern has been broken and a support created above it.
Screenshot taken from Tradingview
On the 4H TF, the same EMA21 support is noticed which supports the theory of a strong move to the upside. This time however, EMA50 is below EMA21.
Screenshot taken from Tradingview
I make my entry after a rejection of EMA21 as support and place my stoploss at the EMA50 support zone on the 4H timeframe
Screenshot taken from Tradingview
My take profit was set at just above EMA50 on the 1D timeframe. This was in a ratio of 1:2.5 with the stoploss.
Screenshot taken from Tradingview
HOW THE TRADE PROCEEDED
In the next few hours, the price surge of solana seemed to confirm my analysis. Solana price hit my take profit and gave me some good amount of dollars.
Here's the proof of trade and the calculations.
Screenshot taken from Binance
Screenshot taken from Binance
Screenshot taken from Binance
I used $51.128 for this trade. It was a 5x Isolated margin trade. I borrowed about $204.512 to make my capital up to $255.64
From the trade history, I bought a total of $255.64 worth of solana and sold them for a total of $271.467.
After repaying my loan, I had about
$(271.467 - 204.512) = $66.955.
That's a profit of about $16 after fees.
Screenshot taken from Tradingview
Solana price went on to further reach $107.3 after hitting my take profit. You can confirm this on the SOL/USDT chart on Binance beyond the period in the Screenshots
Thanks for reading.
Cc:
@pelon53
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