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This post is written as the fourth trade of the third week of the trading competition. In this post, I'm going to be giving a brief introduction and background of the token I'm going to be trading, the team behind it, the exchanges it can be traded on and some stuff about the token. Also, I'm going to be doing a technical analysis and show you why I took the trade. The analysis will be done on the trading view platform while the real trade will be on my Binance App. So, follow me closely.
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.
Here, I'm going to be giving a brief summary on the description of the token I'm going to be trading, the team behind it and the exchanges it can be traded on. The name of the token I'm considering today is Consititution Dao (PEOPLE).
PEOPLE is a native token of an organization called ConsititutionDao, an organization which was founded by a group of people which was led by Jonah Erlich. The group was trying to buy an original copy of the Consititution of the US at an auction. Then, they tried to raised about $47m through crowdfunding.
Initially, the PEOPLE token was started as a meme token. But when the idea of buying the Constitution was greatly supported by people, then there was a sense of purpose for the token. This group that was led by Jonah comprised of about 30 people in which they work together to ensure that the project turn out successfully. And working tirelessly, people actually supported the project and contributed significantly to it. They raised about $47m which they used to buy one of the original copies of the US Constitution.
The group promised the Investors and contributors that they will have the right to vote with how the constitution should be used and what the Organization should do with it and how the organization should be run. They promised that the participants or holders of the token will have access to voting in as much as the hold some amount of the token. They will have the right to decide how the organization should be run and how things should follow in the organization.
When the group was asked about how they are going to make the project as decentralized as possible, they said they are actually working towards making the project people's project. Perhaps that's why they named the token PEOPLE. But it was later stated the community doesn't like the name PEOPLE and the group promised to change it to WTP. The group promised that they are looking for a way in which everyone will have say once they hold the token.
According to Coinmarketcap, PEOPLE is ranked #168 and it's currently trading at $0.06704.
It has a market capitalization of $339, 209, 516;
Volume of $167, 751, 009;
Circulating supply of 5.06 B PEOPLE;
Maximum supply of 5, 060, 137, 335 PEOPLE and
Total supply of 5, 060, 137, 335 PEOPLE.
The screenshot below shows these details according to Coinmarketcap.
Screenshot from Coinmarketcap Platform | SOURCE
Exchanges it can be Traded on
PEOPLE has been listed on many exchanges. Some of the Exchanges it can be traded on are listed here:
- Binance
- Kucoin
- Gate.io
- Coinbase exchange
- FTX
- Lbank
- Poloniex
Etc.
Let's see some of these exchanges according to Coinmarketcap in the screenshot below.
Screenshot from Coinmarketcap Platform | SOURCE
Having seen the project background of the token, the team behind it, and the exchanges it can be traded on, let's move on.
Why are you bullish on this token today?
The pair I'm trading is PEOPLEUSDT, and I'm not bullish on it, rather I'm going bearish. The reason why I'm going short is because of my analysis i did which confirms that the odds is favoring the sellers at the moment. The price is at a very key resistance which is capable of reversing the price to the downside. In fact, it has started resisting the price already. Also, the volume indicator is showing high volume at that key resistance level which is an indication that sellers are stepping in. So, I'm going bearish on it because of these reasons. I will discuss more about it when I'm explaining how and why I took the trade in technical analysis of the token.
Technical Analysis of the Token, PEOPLEUSDT
In this part of the task, I'm going to be giving step by step process on how I did my analysis on trading view. Then, it's important we know that technical analysis is most important part of this task, because without it, we will not know whether to buy or sell an asset. I'm going to be using price action, support and resistance tool and volume indicator as my strategy.
Upon opening the chart of PEOPLEUSDT, to 1 timeframe, I added the volume indicator and marked support and resistance levels. The price has be seen in a horizontal support and resistance for some time now. As you will see in the screenshot below, price keeps bouncing between support and resistance. As the price touches the support, it experiences a rise and the resistance keeps resisting the price.
And looking at the volume indicator, whenever price touches the support and resistance, there's always high volume. In the screenshot below, you will notice I marked with a red rectangle the behavior of volume when it touches the support and with a blue rectangle when it touches the resistance. You will notice the volume increases when it touches these levels. See the screenshot below.
Screenshot from Trading view platform | SOURCE
Switching to 15minutes timeframe, I could see that the resistance level has already resisted the price, and it's already falling. Then, there's high volume from the volume indicator which shows that the sellers have stepped in to the market. See the screenshot below.
Screenshot from Trading view platform | SOURCE
Having all the reasons:
- Price is at a key resistance level on a 1 hour timeframe
- There's high volume from the volume indicator
- Resistance level has resisted the price on 15minutes timeframe.
Then, I marked the entry and exit level on trading view. The entry was placed at $0.06701, stop loss was placed above the the resistance leve at $0.0710. Take profit was placed at the support level, at $0.0627. See the screenshot below.
Screenshot from Trading view platform | SOURCE
Having the entry and exit price level at hand, i opened my Binance app and placed the real trade using the margin trading option. Everything was set appropriately. See the screenshot below.
Screenshot from My Binance App
Then this screenshot below was taken after the execution of the sell position. This shows that I have successfully opened a sell position. Let's see the screenshot below.
Screenshot from My Binance App
What is your plan? Do you want to keep it for a long time? Or when to sell it
I don't plan on holding the trade for long. The reason is, firstly, the analysis I did is not an analysis that will take long time. It's an intraday analysis and it should not be more than 48hrs before price will hit the exit. And once the price hits the take profit or stop loss, I will be out of the market. Secondly, when you do margin trading, you are not in possession of the asset and hence you can't hold. This is unlike spot trading where you can decide to hold your asset as long as you want.
Do you recommend that all people buy it? The reasons for recommending or not recommending it.
I sold the asset I traded, i didn't buy. If I would recommend people to sell it, then it would be when I sold it. The reason I would recommend people to go short on the pair is because of my analysis. Thanks price wad on a key resistance level which has been resisting the price anytime it touches the level. Also, the volume indicator is showing that the sellers were stopping in to the market as there's was increase I volume when the price was on that key resistance level. So, in essence, the reason for recommending them to sell would be because of the bearish signals I'm seeing on the chart.
Conclusion
In this post, I have been able to explained briefly the project background of the token I have traded, the team behind it, the exchanges it can be traded and the growth so far. I have also been able to do a technical analysis on trading view platform using price action, support and resistance tool and volume indicator strategy. I will make sure I upload the results of all the four trades I have traded this week and upload the shirt video showing the trades history of all of them. Thanks to the Admins of the Steemit Crypto Academy and my team leader, @pelon53.
Consulted Article 1 SOURCE
Consulted Article 2 SOURCE
Written by @msquaretk