REN/USDT Sell | S6T4 - Team Trading Post for Team- Frontlines

_{Cover Page Created by me, @msquaretk | Made on imarkup app}

This post is the second day of the fourth week of the trading competition. For this fourth week, I am in "Frontline team", the team lead by Professor @shemul21 and @abdu.navi03. In this second post, I'm going to be showing the project background of the token I am trading today, the team behind it and exchanges it can be traded. In addition, I will be showing step by step process of my analysis of the token on trading view platform and the real trade on binance exchange platform. So, follow me closely.

The name and introduction of the project token, and which exchange can be traded on, project/technical/team background

Here, I will be showing the name of the token I'm trading today, a brief introduction of the project background, some statistics on the token, wallets it can be stored and exchanges it can be traded on.

The name of token I'm trading is REN. REN is a native token of REN's Ecosystem, an open protocol platform which allows transfer of permission less and value between blockchains. Ren was formerly called republic protocol before it was changed REN. Ren was created by two people who attended the same university. They created Ren after their graduation from the higher institution of Australian National University. The names of these individuals are Taiyang Zhang and Loong Wang.

So the brain behind the project are those two people. Zhang and Want, noticing the problems occuring in OCT cryptocurrency trading, they looked for the way to overcome it and that was what gave birth to REN, republic protocol then. The aim of creating REN I to make oCT trading as decentralized enough, then more trustless and to provide a mechanism in which different blockchains would interact with each other.

REN ran two major initial coin offerings (ICO) in the year 2018. Both ICOs were meant for two categories. The first ICO was made for the private and about 28 million US dollar was realized for the advancement of the project. The second ICO which was run for public was done in the early 2019, February. About 5 million US dollar was realized. The funds realized during these ICOs was used for the growth and development of the ecosystem.

People who invested in Ren then were able to buy 1 REN at 5cents USD. About 56% of the entire supply was sold during the ICO. The Ren was distributed to the investors and were encouraged to keep their token so they can make profit when it appreciates in the future. REN is built on the Ethereum network. It's an ERC-20 token.

Like I said earlier, REN is the token of the Ren ecosystem. It performs two main functions on the network: it's used for paying the trading fee of the order made on RENVM and for the payment of bonds. The bonds actually paid for for the registrar which is a smart contract for managing the Ren ecosystem.

Ren is an ERC-20 and hence it can be stored on any wallet which supports Ethereum. Some of the popular wallets which REN can be stored are, Trust wallet, atomic wallet, My Ether wallet, ledger, trezor etc.

According to Coinmarketcap, Audius is ranked #150 and it's currently trading at $0.4433.
It has a market capitalization of $442, 877, 471;
Volume of $85, 037, 149;
Circulating supply of 999, 037, 500 REN;
Maximum supply of 1, 000, 000, 000 REN and
Total supply of 999, 999, 633 REN

The screenshot below shows these details mentioned above according to Coinmarketcap.

_{Screenshot from Coinmarketcap platform | SOURCE}

Exchanges It can be traded on

REN has been listed on many exchanges. Some of the exchanges it can be traded on are listed below.

Binance
Kucoin
Gate.io
Huobi Global
Coinbase exchange
FTX
Bithumb
Gemini
Etc.

Belowis the screenshot that shows some of these exchanges according to Coinmarketcap.

_{Screenshot from Coinmarketcap platform | SOURCE}

Why are you optimistic about this token today, and how long do you think it can rise?

I'm optimistic about the token because of the analysis I did which shows that the price of the token may experience a fall. According to the analysis I did, the price is at a very key resistance level which has resisted the price more than two times and since it has done that, it's capable of rejecting the price again. Also, the Stochastic oscillator also confirmed that, it entered overbought region and gave sell signal. According to my analysis, the price should fall to at least $0.4285 which is the closest support level to that area.

Technical Analysis of the Token, AUDIOUSDT

In this part of the task, I'm going to be showing how I did the technical analysis on trading view platform, the strategy I used and step by step procedure I took. Then, I'm going to show how I took the real trade on binance exchange app. The strategy I will be using will comprise of price action, support and resistance, candlestick pattern and technical indicator (Stochastic Oscillator).

Support and Resistance are areas or levels where price turns. Price is likely going to bounce back when it reaches these levels. Stochastic Indicator is an indicator which shows when the pros oversold and overbought. And it gives buy and sell signals when the line cross in the overbought and oversold, respectively.

Upon opening the chart of REN/USDT, 30 minutes timeframe, I noticed the price is on a key resistance level which has rejected price for no than two times. Then, also looking at the area where the price is, the reversal candlesticks pattern are being formed which confirms that the resistance level may hold. In addition, confirming the sell signal on the Stochastic oscillator, I could see that the price is overbought and that the Stochastic lines have crossed already. See the screenshot below.

_{Screenshot from Trading view platform | SOURCE}

Now going again to 15 minutes timeframe, I could see that at the resistance level, the bearish engulfing candlestick pattern has formed. I used multi timeframe to be sure of the bearish signal I'm seeing on 30 minutes timeframe. Also, the Stochastic entered overbought, too and the lines have crossed. Let's take a look at the screenshot below.

_{Screenshot from Trading view platform | SOURCE}

Now having these reasons at hand:

Price is on a key resistance level
Several bearish candlesticks pattern we're formed on the resistance level on 30 minutes timeframe
Stochastic oscillator overbought and the lines crossed which is a sell signal on both 30 and 15 minutes timeframe
Bearish Engulfing candlestick pattern formed on 15 minutes timeframe

I marked the entry and exit price levels. The entry was at the resistance level after the bearish Engulfing pattern at $0.4422, stop loss was placed above the resistance zone at $0.4554 and take profit was placed at a nearest support level at $0.4285. See the screenshot below.

_{Screenshot from Trading view platform | SOURCE}

Having the price entry and exit levels, I opened my Binance App to take the trade. I used the future margin option to place a real sell position. The screenshot below shows when I was setting the entry and exit price.

_{Screenshot from my Binance App}

Then, the screenshot below was taken after the execution of the sell position. It shows that I have successfully placed a sell position.

_{Screenshot from my Binance App}

Do you intend to keep it for a long time or when to sell it?

I don't plan to keep the trade for a long time because I only did intraday analysis and when the price hits the exit, I will be out of the market. Also, I did margin trading, and we know that in margin trading, you are not in possession of the asset, this is unlike spot trading where you can hold your asset you have bought and decide to sell it anytime you like. We just take advantage of the fall and rise of price to make profit in margin trading and we don't won the assets. In essence, once the take profit or stop loss hits, that's the end of the trade.

Do you recommend everyone to buy? and the reasons for recommending/not recommending.

Yes, I will recommend that people sell the asset. But that would have been when I sold it because of the analysis I did, intraday analysis. The reason for recommending would be because of the anlaysis I did which confirms that the price is likely going to form. I have already explained the reasons I took the trade when I was talking about the technical analysis of the token. I have about four reasons which served as confluence before taking the sell position. However, it's important that sound a warning in my recommendation that people should manage their risk be well because cryptocurrencies are very volatile.

Conclusion

In this second post for the fourth week of the trading competition, I have been able to explained the token REN, given a brief summary of the project background and the tram behind it, the wallets I can be stored, and the exchanges it can be traded on. In addition, I have shown how I did the technical analysis on trading view platform and the strategy I used. Then I also show how I placed the real trade using margin trading option. Thanks to my team leaders, @abdu.navi03 and @shemul21

Consulted Article 1 SOURCE

Consulted Article 2 SOURCE

CC: @abdu.navi03
Written by @msquaretk