Edited with imarkup
1.- The name of the token and introduction of the project. Technical background of the project and team in charge of the project. In which Exchange or exchange can be negotiated.
Source
I traded on the NEAR protocol token for today's contest and the image is shown above, taken from coinmarketcap. Some important fundamental analysis and statistics of the token are displayed below:-
| Factors | Statistics |
|---|---|
| NEAR Protocol Price | $12.96 |
| Price Change (24h) | $0.7338 (6.00%) |
| 24h Low / 24h High | $12.15 /$13.52 |
| Trading Volume (24h) | $728,090,506.18 |
| Volume / Market Cap | 0.08506 |
| Market Dominance | 0.43% |
| Market Rank | #21 |
| Market Cap | $8,560,073,704.88 |
| Fully Diluted Market Cap | $12,965,972,071.56 |
Name And Introduction Of Project/Token:-
The NEAR protocol is a blockchain project that is designed as a layer one blockchain. It was made to function as a platform that would be run by a community that combines cloud computing power. This methodology was meant as a means of removing limitations that have been experienced in the entire blockchain technologies such as low speed in transactions, poor interoperability of blockchains and low throughput.
Consequently, it was meant to function as an environment that would be ideal for the hosting of decentralized applications and to function as a platform that is both user and developer friendly. An example is the technology it uses that makes its account names readable by humans. This is quite unlike what is obtainable in some other blockchains that come in the form of wallet addresses that are cryptographic in nature.
The protocol is continuously updated by the NEAR Collective which is a community that is responsible for working on the initial code in order to update it and also ensuring that regular updates are released for the proper functioning of the ecosystem. The goal of this community is to make sure that the ecosystem remains secure so that high-value assets or even the identity of users can be safely stored in a way people would be confident of using the system.
Traded Exchanges:-
On coinmarketcap you can filter the information available to reveal the different exchanges and the number of exchanges where Near tokens can be purchased or traded and the different pairs in which they can be obtained. Some of these exchanges include:-
- Binance
- KuCoin
- Gate.io
- Huobi Global
- Bybit
- BitFinex
- OKX
- MEXC
- ZB.COM
- Tokocrypto
- Indodax
Project Team/Technical Background:-
Eric Trautman, who is an entrepreneur that had worked with Wall Street and had been credited to have founded Viking Education is known to be the founder of the NEAR protocol. The organisation was co-founded by lllia Polosukhin who had gained experience in the internet industry for more than 10 years for having worked with Google for up to 3 years.
The second co-founder is Skinov Alexander who was a computer scientist that used to work for the popular internet organization, Microsoft and who later joined the workforce of memSQL where he later became the engineering director.
Furthermore, the NEAR protocol is said to have a team of developers that is very extensive and which includes prestigious gold medalists from the International Collegiate Programming Contest (ICPC). Equally, it is said that the team behind protocol have the ability to develop systems that are actually real word sharded and it hopes to do so in order to improve scalability.
Objective Of The Token/Project:-
The protocol makes use of a certain Nightshade technology that has the ability to massively improve the throughput of transactions. Actually, the Nightshade is a type of sharding that comes with some variations. In this setup there are people who function as individual validators that have the ability of processing parallel transactions or throughout the different sharded chains and this has the ability of generally improving the capacity of the ecosystem.
So, the ecosystem has the ability of producing up to 100,000 transactions in a second and also gives out finality to transactions in a near-instant manner based on its use of a block cadence that functions in just a second and the transaction fees remain at just about zero. Furthermore, the network has addresses that can be read by humans and this is aimed at serving as an improvement against other blockchains.
2.- Why are you bullish on this token today?
I am not actually bullish on the coin today. Nonetheless, I am bullish on the long-term. That is to say I believe the coin would perform tremendously well in the future when crypto's hopefully recover from the ongoing parish season.
Really, we the erudite students of the Steemit Crypto Academy believe it will recover because the market moves in segments and there is a current bearish season that would still give way for a bullish run in the future.
However, for today the coin seems to be making a bearish reversal even in this period of a minor uptrend (note that the trend which has lasted for several months is a major downtrend and the uptrend is just minor because it has only occurred for a few days on the coin).
3.- How to analyze the token for an operation? You must compulsorily use methods and analysis learned in the Crypto Academy.
For the technical analysis aspect I had to rely on the use of:-
- Two EMAs
- Simple price action
- Break Retest Break (BRB) strategy
For the two EMAs I had to add the 25 period EMA and the 100 period EMA. The 25 period EMA is the short-term EMA and hugs price closely by following all the slightest price changes and reacting to every market noise. It indicates the direction of the price in the short term.
The 100 period EMA is a long-term EMA and does not easily follow prices. The long-term EMA indicates the direction of the price in the long-term and only switches its position to indicate switch in trend when the trend has witnessed greater momentum and volume in the favoured direction.
From the image above on the 1-hour timer blue-colored long-term EMA is below the pink coloured short-term EMA which is also below the price (or which simply hugs the price from under by acting as a dynamic support for the price). The price being above the two EMA indicates that there is an uptrend not just in the short-term but also in the long-term.
However, you should be quick to also notice that based on price action the uptrend is coming into doubt as a double top has been created. The presence of the double top shows that the second top has failed to break above the high of the previous top.
The double top is a very strong signal that a bearish reversal is about to follow as price has consecutively gotten to the same high point two times. Price had also begun to decline moderately and was about to go below the previous support that had been indicated as a dynamic support by the short-term EMA.
Moving closer on the 15 minute time frame you will discover that after the second top was created prices had begun to decline and the momentum which was shifted to the down side was shown by the long-term EMA going above the short-term EMA while the price moved below the both. This created a bearish EMA crossover which is an indication to go short. However, being a very conservative trader I would wait for the price to break below the previous dynamic support of the uptrend that was reversing.
Later on in the 1 minute time frame you will discover that the price has eventually broken below a previous low point that had been created when the price made the first breakout attempt. This equally completes the criteria for Break Retest Break (BRB) strategy.
This particular strategy requires that you wait for price which has broken out in a particular direction to come back to retest the level from which it had broken out and if it eventually breaks above or below the initial breakout again then you enter in the direction of the breakout.
I took my sell entry as the price broke below the previous swing low of the initial breakout action and then set my stop loss above the highest point of the breakout. My running profits after a while is shown below:-
In closing the trade, I discovered that a rejection candle had been formed in which case it was expected that price may not be able to push further below from where it is currently. This was confirmed by the RSI which indicated that the price had got into an oversold region and the RSI line had quickly moved above the 30th mark meaning that a reversal could follow. Eventually, a strong bullish candle began to form and I had to close the trade at this juncture.
- The details of my trade carried out on Binance are shown below:-
4. Do you want to keep it for a long time? Or when to sell it?
I do not intend to keep my position open for too long. Moreover, I did not actually purchase the coin, I only opened a futures contract predicting that the price would plunge a bit deeper from where it is now as the market makes a bearish turn in a period of minor uptrend.
However, I intend to sell or close the position in the upcoming area of major ssupport . Nevertheless, I would use the RSI to filter out market signals and close the position if it should ever indicate possibilities of oversold market conditions.
5.- Do you recommend that all people buy it? The reasons for recommending or not recommending it.
The NEAR protocol is a very good investment and I would encourage everyone to buy and store the coin especially in this period when cryptos are moving down. The coin has a market capitalization of $8.60 billion and this places it in the mid-capitalisation strata which means that it is a serious project that may not rug pull or collapse any day as far as cryptos remain relevant.
On coinmarketcap it currently ranks number 21 and there are a lot of other reasons I would encourage people to buy and store the coin. Some of these reasons include:-
In 2021 the coin had increased in value by more than 10 times and this would have equally offered tremendous profit for people holding the coin
It has attracted the attention and investment of major players in the crypto space like Coinbase Ventures and Andreessen Horowitz
The ecosystem is built to support and already supports a lot of different decentralized applications and this has attracted quite an enormous active user base
The NEAR token has a supply of 1 billion and only 5% of this is minted yearly in order to prevent inflation and this makes it a great investment
These are some of the reasons why I believe the project would be great and encourage people to purchase as much as they can and store, especially in this period of crypto-dump . Hopefully, the price will skyrocket again like the time it grew by up to tenfold in a year.
6.- Any other important information of the token/project.
It is important that I point out the NEAR Protocol Ecosystem Fund. This funding was announced on the 25th of October 2021 and it was an $800 million funding initiative just as have been created by such other platforms like Fantom and Avalanche. The essence of the fund is to use it in working on initiatives that are meant to accelerate the rate of growth expansion of the network.
Out of this fund $350 million came from Proximity Labs. Of all the funds $250 million is to be utilised in scaling projects that are already in existence. For Start-up Grant Pools there is a $100 million share from the fund and 20 startups are to receive up to $5 million each. The network has the interest of focusing its funding activities on Decentralized Finance (DeFi) projects. Equally, NFTs, gaming and DAO related projects are receiving a lot of attention.
CONCLUSION
My trading journey today was a tremendous success. I recorded the most profit in all my trades which I have carried out through this week and today's training session. I was able to recognise the presence of an uptrend on the NEAR token but also discovered that the market was making an elongated bearish retracement and I jumped in on this retracement.
I marked out important areas of support and resistance and was able to discover that the market is headed for an incoming support where I would hopefully close my position. I believe the NEAR token will be a great investment in the future and it lies among the mid-capitalization cryptocurrencies. I recommend people to buy and store the coin even though I traded in favour of its downward price movement today.