EDITED BY ME ON CANVA
Hello friends, welcome to another week of the trading competition, and this week, I will be glad to join team Frontline.
Join us as we begin our fun-filled crypto trading adventure.
Today friends, we shall be learning on litecoin [LTC]. As a matter of fact, I will be trading on the pair LTC/USD [Litecoin/Usdollar]
Litecoin as we know can be explained as a peer-to-peer cryptocurrency, and a project that was introduced under MIT/XII license.
Litecoin was founded by Charles Lee, a Google employee, who turned out to be the director of engineering of coinbase industry, in the year 2011.
Lee introduced litecoin through an open source client on the 7th of October 2011, and on the 13th of October 2011, litecoin went live.
Litecoin happens to be the native token of litecoin blockchain and a project fork of Bitcoin, with a difference of 2.5minutes block generation time, different algorithm hashing ( litecoin makes use of script instead of SHA-256 ), increased quantity of coins and a modified GUI.
Also, during Nov 2013, there was a massive growth in the aggregate value of litecoin and a 100% leap in less than a day.
When compared to Bitcoin, litecoin has a total supply which is 4times that of Bitcoin.
Litecoin has a total supply of 84million while Bitcoin has a total supply of 21million.
For more statistics, let's visit coinmarket cap
Source
The following Statistics were gotten as of the time this post was made.
| Token name | Litecoin |
|---|---|
| Rank | #21 |
| Price | $111.94 |
| Circulating Supply | 69,746,118.78LTC |
| Total supply | 84million |
| Market cap | $ 7,807,647,592 |
| Fully diluted market cap | $9,403,281,633 |
Litecoin is a widely acceptable cryptocurrency, it has a good project and serious sponsors, and at such, it is traded in so many exchanges.
Exchanges such as Binance, coinbase, Huobi, kucoin, FTX etc.
Below is a screenshot showing some of the exchanges that trade litecoin
From my research and technical analysis, I am optimistic about litecoin for some reasons, amongst which are:
Litecoin blockchain is one of the most secured blockchain network, it is very difficult to hack into litecoin system.
Also, when compared to Bitcoin, litecoin consumes a lesser period of time with a more fruitful output.
For my technical analysis, I am confident about litecoin because of the signal I received from my analysis.
I made use of my RSI indicator alongside my resistance and support levels, which will be explained in the next stage.
And I am sure you don't want to miss that part.
Also, for how long litecoin would rise, I cannot predict. And this is because of the current world happenings which is greatly affecting the cryptomarket. But with the proper use of technical analysis, I can predict the next price move of litecoin.
Follow along please as I explain the next stage of this competition post.
From my professor's class, I have learnt a lot on resistance and support zones, I also learnt about risk management and the use of Indicators and I made a diligent application of all.
From my previous lessons, I learnt that if a price hits a support or resistance level, there is a high chance for the price to be rejected depending on how strong the resistance and support zone is.
I also learn to place my take profit a little bit above my resistance line and a little bit below the support line.
Please watch how I applied this.
SCREENSHOT FROM MT5
From my Screenshot above, I analysed the pair LTCUSD on my Mt5 on a 1hour time frame
When I entered the market, I noticed that the price was ranging on the resistance line, which happens to be a strong resistance line, and this signals a likelihood for trend reversal.
I chose to confirm this signal using my RSI Indicator.
When I added my RSI Indicator, I noticed that the price was in an overbought region of 70, thus indicating a trend reversal.
And this aligned with the signal gotten from my resistance and support levels.
With these two confirmations, I decided to enter a sell order, which I placed my take profit at the nearest support, in order to manage my risk.
And due to risk management and the high volatility of the market, I used a small lot size, and a risk reward ratio of 1:1.
SCREENSHOT FROM MT5
The above screenshot is that indicating the progress of my analysis, from the above, we can see that the price is approaching it's desired destination.
SCREENSHOT FROM MT5
The above is the result of the market entry I carried out
Since I made use of my Mt5 for the live trading, I have no intentions to hold the coin for long.
As seen above, my plan is to remain in the market until the market hits my take profit, and if the market should go against me, I have my stoploss which would kick me out of the market.
So I have no intention to hold the coin for a long time.
As seen from my trading analysis, I entered a sell order using my Mt5, so I cannot recommend anyone to buy as at when my analysis was made.
If I am to recommend to anyone, I will have to reanalyze the market technically, due to its high volatility, especially this period of Russia-Ukraine crisis.
For long term investors, I think now is the best time to purchase and hodl litecoin in much quantity, as the price will sure increase.
Today, I made analysis on LTCUSD, and I used my RSI Indicator, alongside my resistance and support levels.
Litecoin is indeed a good project to invest on as it makes use of script as it's algorithm hash.
A full video of my transactions will be uploaded in the Google form.
I appreciate Prof @abdu.navi03 and @shemul21 for teaming up to form this great team.
Hello Prof @abdu.navi03 and @shemul21.
Here's the repost to my assignment task
And here's the link to the previous one
https://steemit.com/hive-108451/@jueco/ltc-usd-sell-s6t2-team-trading-post-for-team-frontline
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