Hi guys, you are welcome to my trading task for today which is the fourth day of my contest entries for the Steemit Crypto Academy trading contest. This task is submitted for team one which is team frontline. Today I traded the MATIC token against the USDT stable token. After carrying out some research and technical analysis I placed a long position and got through the trade successfully since it was a futures trade.
MATIC is the native or governance token of the Polygon network formerly known as the Matic network. The network protocol allows easy means of building diverse types of applications in the Ethereum blockchain. This protocol allows developers to be able to create ZK roll up chains, Stand alone chains and roll up chains. It makes application development on the Ethereum ecosystem very easy for developers.
As a governance token, MATIC has high potential of growth and provision of liquidity since it is used in securing the network and governing the system. This polygon protocol enhances scalability on many blockchains as a layer 2.0 network on Ethereum blockchain.
This project was launched in late 2017 and the Co-founders are;
Janynti Kanani (CEO of Polygon and a full-stack developer and blockchain engineer)
Sandeep Nailwal (Chief operator on Polygon, programmer and entrepreneur)
Anurag Arjun(Co-founder of Polygon and a non-programmer)
To buy or trade the MATIC token you can use any of the following trading platforms:
Binance
OKX
Hotcoin Global
Mandala Exchange
Coin Tiger
FTX
KuCoin
Huobi Global
Coinbase Pro
On the above listed exchange platforms the MATIC token has specific trading pairs.
For more than a week now the MATIC token has been on a bull run with a series of bullish daily candles forming continuously. This can be seen on the screenshot below that shows a series of daily candles of more than a week. At this point of the market I realized the current candlestick has the potential of maintaining the bullish market structure so I have to check using the smaller time frame to gain assurance before making any entry.
After checking lower timeframes and understanding the market move I decided that MATIC is a good coin to carry out an intraday futures trading.
I applied my knowledge of candlesticks pattern, TEMA indicators and the RSI indicator to anlsyze the MATICUSDT trading pair on Tradingview.
As seen from the screenshot above I checked out this trading pair on a 1H timeframe and saw that the was a TEMA cross entry signal for a long position some hours ago and I also could recognize that a certain candlestick pattern was in formation. At this point the price was trading in a range forming a possible flag pattern which signals a trend slowdown for a continuation to follow after breakout.
I switched the timeframe to a 15 minutes timeframe such that I could see the range very clearly. The price was trading in a consolidation between a resistance just below the highest high at that point and a support just below the resistance. I waited patiently while observing the RSI indicator very keenly. When the price hit the support for a rebound, and the RSI hit the zero level (mid line) I made and entry to a long position and placed the stop loss just below the support while my take profit was set above the immediate resistance and just below the highest high at that point. After a period of waiting, my target got hit and the trade closed.
We can see from the above screenshot that my target was met and the profits I made was $5.2 after closing at the 1.6331 value.
I only carried out a futures trade for an intraday activity on this crypto pair. I will not be holding the MATUC token for a long time time but I will be observing the chart in case the Daily chart breaks the resistance clear to its current position and up to two candles form and the RSI and TEMAs give me a go and I will likely buy this token to hold for a short term until the next resistance level.
I recommend that traders take a keen look at the MATIC token since it’s very close to a strong resistance and if this resistance breaks we can have an entry opportunity for a long position that may last for days. If on the other hand this price rejects that resistance we can make entries for the south side aiming for a correction.
When you check on $MATIC or #matic on Twitter you will discover that lately the MATIC token has been receiving some positive feedback and more awareness to its community on how bullish the crypto can be within this period. Looking on the official Twitter handle of the Polygon network we can see on the screenshot below how they tweeted and pinned good news that may increase the bull run of Polygon governance token MATIC
Gathering information from Twitter and other tangible sources on the MATIC token and Polygon network as a whole gave me a conclusive information as to the bullish move of MATIC in the short term. I did the analysis on Tradingview and came to a conclusion of placing a long position on MATICUSDT which went wel and I made a $5 profits.
Thanks for reading and trade safely for the rest of the week.