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It's another week in the Crypto Academy. This is the week one of the trading competition. It's an initiative organized by the Admins of the Academy to allow us display our skills and test what we have learnt so far in the academy. I have joined reminane team yesterday. So, in this post, I will be giving the full details of the trade I took today, the second day of the first week, Teusday 22/02/2022. So, follow me closely as I will be analysing the asset.
The name and introduction of the project token, and which exchange it can be traded on, project/team/technical background
In this part of the task, I am going to be telling the name of the token I will be trading for the second day(22/02/2022) of the trading competition and a little bit on the introduction of the project token and the growth so far.
The name of the token I will be trading is DASH. The token was launched by a man called Evan Duffield in the Month of January , 2014. The coin is the fork of Bitcoin protocol. DASH is the altcoin and it was speculated to dump and pump in the early days. It was used in the dark net market as a result of being rebranded as the darkcoin.
The token was all rebranded in March 2015 and has the name DASH. By August 2016, Dash was no longer used as darkcoin in the dark net market. In the year 2017, Duffield and some of his people who worked on the development of DASH created a blockchain lab. In 2018, DASH was one of the top 12 cryptocurrencies and had about $4.3 market capitalization. And research shows that DASH was the popular cryptocurrency in Venezuela in the year 2019.
The token, DASH was designed in order to overcome the bitcoin shortfalls. The token was created to enable and facilitate quick transaction and swift governance. DASH was different from bitcoin in the sense that, the reward is divided into three: 45% is actually given to the miners, 45% is given to the master node and the remaining 10% is given to the governance budget.
DASH blockchain uses proof of work consensus protocol. It has a hash function which is known as X11. Every block is mined at every 2½ minutes. There's two kind of transactions available which masternodes provides: *instantsend, a transaction which bypasses mining but requires masternode consensus before the transaction can be validated and Privatesend,a transaction which allow consumer to enjoy privacy which mixes unspent DASH of the users before processing the transaction.
At the time of writing this post, according to Coinmarketcap, DASH is ranked 79 and it's trading at $91.52. This was after the entry of the sell trade I took. You will see the price at which I sold the asset later.
It has a market capitalization of $969, 198, 829;
Volume of $224, 903, 634;
*Maximum supply of 18, 900, 00; and
Total supply of 10, 590 391 DASH
The screenshot below shows the details of DASH according to Coinmarketcap.
Screenshot From Coinmarketcap | Source
Exchange It can be traded on
Now, having seen that name of the token I'm trading, the introduction of the project, the founder and the growth so far, let's quickly see where the token can be traded on.
DASH has been listed on so many exchanges. Presently it can be traded on Binance, Gate.oi, Kucoin, Kraken, Huobi Global, Could Exchange, Poloniex, Bybit etc
The list of some of the exchanges where the DASH can be traded on is I'm the screenshot below. Thanks Lisa is endless.
Screenshot From Coinmarketcap | Source
Now, having seen the exchanges where DASH can be traded on, let's look at the technical analysis i did on trading view before taking the sell trade of DASHUSDT.
Technical Analysis of the token , DASHUSDT
In this part of the task, I will be giving a technical analysis I did on the chart of DASHUSDT and how I took the trade.
Technical Analysis of Sell Trade, DASHUSDT
Now, I will be giving how I analysed DASHUSDT before I took a sell trade today. Upon opening the chart of DASHUSDT to M15 timeframe, i said the market in a bearish trend in which the market structure confirms that the trend is bearish as it will be seen in the screenshot below that the price was making lower lows and lower highs.
As an intraday traders, I have confirmed the trend that the trend is bearish with the aid of market structure. But at the time I opened the chart, the price is making a pull back to the upside. Meaning that it's retracing to correct the last impulsive move to the downside. Then, a resistance level is spotted which has capacity to resist the market to the downside. Also, the relative strength index is overbought which is also the signal for a sell. See the screenshot below.
Screenshot From Trading view | Source
Then, I switched to 5 minutes timeframe to see what the price action is doing there. Upon switching to this timeframe, found out that a bearish divergence occurred. A bearish divergence occurs when price makes higher highs and RSI makes lower highs. Bearish divergence means that the buyers are getting exhausted and it's a sell signal. And also the price is at the resistance level indicated on 15 minutes timeframe. See he screenshot below.
Screenshot From Trading view | Source
On 1 minute timeframe, multiple doji candlestick pattern forms at the resistance level. When multiple doji candle like that forms, t signifies that the sellers may take over the market especially if they forms at the key resistance level. Also, shortly after this, a shooting star pattern forms at the resistance level. Shooting star pattern is a bearish reversal pattern. See the screenshot below.
Screenshot From Trading view | Source
Upon confirming with multiple tools that the price is going to continue its bearish movement, I entered a sell entry at $90.47 with the stop loss placed above he resistance level at $90.80 and take profit placed at a nearest support level, at $84.8 . See the screenshot below.
Screenshot From Trading view | Source
The screenshot below shows the margin trade placed on binance platform. Having done the analysis on trading view platform, I placed the trade on my verified binance exchange platform. Since I'm interested in selling at the market price, I chose market price and placed the sell order. See the screenshot below.
Screenshot From My Binance App
Then, upon clicking sell/short, a page loaded where I need to confirm the sell order. I clicked the order and the trade was executed. See the screenshot below.
Screenshot From My Binance App
The trade hit the stop loss. The screenshot below shows the result of the trade.
Screenshot From My Binance App
Your plan to keep it for a long time or when to sell it?
I actually sold the DASHUSDT so as to take advantage of the bearish trend and make profit. Once the price reaches .y take profit, I am out of the market. And if the price hits my stop loss, that means I will also be out of the market since I did margin trading.
Do you recommend everyone to buy? Give reasons for recommending or not recommending.
If I am to recommend people to sell DASHUSDT,then it would be when I actually sold it. According to my analysis, I have seen that the price is likely continue its bearish movement. The price was at a key resistance level, and RSI overbought which is a sell signal. Also, a bearish divergence occurred on 5 minutes timeframe which is also a sell signal and a reversal pattern candlestick that formed on 1minute timeframe. This would be why I would encourage whoever wants to sell the token at the time I sold it to do so. However, it's pertinent to say that the person should manage his risk very well because no strategy is 100% effective and that cryptocurrency is very volatile.
Conclusion
In the second day of the first week of the trading competition, I have successfully done a technical analysis of the pair of DASHUSDT. I have used the knowledge gained from the Professors in the Crypto Academy do the analysis and I have executed a live trading on my verified Binance exchange.
Thanks to Admins and Professors for the initiative. It is a very good one as we are practicing what we have learnt so far. I will surely upload a video showing the result of each day trade, and yet each result may also be on each day post.
Written by @msquaretk