Hello Everyone...!!!
Last week we had a successful and an amazing trading competing of which we showcase our knowledge on crypto trading. This week is another week for the trading competition and I have joined Team Frontline with professor @shemul21 and @abdu.navi03.
Introducing the token for the day
Polygon (MATIC)
MATIC is an ERC-20 token of the Ethereum network that formed the first platform for the Ethereum scaling and infrastructure development. The adoption of Polygon transforms the Ethereum network into a full fledge multi-chain system like the Avalanche, Polkadot and other multi-chain networks. Polygon is a Layer 2 scaling solution that aimed to facilitate the adoption of cryptocurrencies by larger group of people backed by Binance and Coinbase.
Polygon network combines the Proof-of-Stake and the Plasma Framework which was proposed by Vitalik Buterin, the co-founder of Ethereum as a blockchain architecture for easy function of scalable and reliable smart contracts. Polygon are able to house unlimited number of decentralized applications on their network due to the Plasma Framework without facing drawback issues related to PoW of the Ethereum blockchain. This makes Polygon to pull about 60 DApps to its PoS-secured Ethereum sidechain.
On a single sidechain Polygon can secure about 65,000 transactions per second and can validate block within a confirmatory time of 2 seconds. The native token for Polygon is MATIC which is an ERC-20 token running on the Ethereum network. MATIC are used in paying transaction fees, payment of services and also as a settlement currency between users on the Polygon sidechain.
Polygon was launched in 2017 by a team of the Ethereum network and co-founded by Jaynti Kanani, Sandeep Nailwal and Anurag Arjun. Polygon first operated as a sidechain on the Ethereum network before moving to its network in 2019.
MATIC can be traded on many exchange platforms like Binance, gate.io, KuCoin, Bitstamp, Poloniex, Bitstamp, OKX, Binance TR ect. I will be trading MATIC with my Binance exchange account as it is the most popular and reliable exchange with low trading fee.
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Why am I optimistic about this token today, and how long do I think it can rise?
MATIC is an ERC-20 token of the Ethereum network that has a great potential of gaining an appreciable value when hold for future benefit. The project is a layer two solution which means that it focuses on instance blockchain transactions and reducing problems of scalability.
Its price has gained an appreciable value this morning and retraced to from a strong support, which gives a hint of bouncing back to test the previous resistance. With proper technical analysis we can spot good trading opportunities with MATIC as it is a very volatile token.
MATIC Statistics
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From the screenshot above, we can clearly see that MATIC has a Circulating Supply of 7.56B MATIC, Market Cap of $12,019,274,154, ranked #16 and have a price of $1.9 at the time of writing this post.
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Also, on the screenshot above We can see that FIL has attained an all-time high price of $2.92 which was on Dec 27, 2021 and all time low at $0.003012 on May 09, 2019. With regards to the current price, MATIC has an increment of 35093.04% from the all-time low and 45.57% decrement from the all-time high price.
All time price chart of MATIC
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From the statistics, we saw that MATIC is still around its all-time high price and with low circulating supply and high market capitalization which shows a great potential for MATIC.
MATIC has attained its all-time high two months ago and still around that price even though there was great bearish market for all tokens. The project has a promising future and sure for the coming three months MATIC will break its all-time high again.
How to analyze the token?
I will Analyze this coin using the MATIC/USDT crypto pair on TradingView. I have applied the Japanese candlestick chart which connect sensitive information like opening and closing price, high and low swing points. I have added Ichimoku indicator and RSI to help identify direction of trend.
The trade I chose here is a scalping trade so I have selected 5 minutes time-frame and as well marked resistance and support levels.
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On the chart above, we saw RSI indicator bridged the 30-mark as a result of oversold, the line bounce back to take a bullish reversal trend while price formed a strong support signaling a bullish reversal trend. Several bullish candles were seen and an entry point was marked. To confirm my entry point, Ichimoku formed a green color and was trying to move below price action given an early signal for bullish trend.
The confluence from Ichimoku cloud confirmed my entry position and I marked a take profit level at $1.60 and stop loss level at $1.555 just below the strong support point.
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On my Binance exchange, I open a spot limit order for MATIC at $1.572. Upon waiting for several minutes, I saw that price was moving towards my direction and execute a stop limit order with my take profit
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My Plan to Hold MATIC long or Sell
MATIC is a token with great potentials and holding it will yield a great future benefit. For the trade I have executed was a scalping trade and it was because of the opportunity I saw during that time. I sold the token and made little profit.
When MATIC price retrace to the support level, I will buy and hold for future benefit as the project has promising and potentials in gaining an appreciable value in some few months to come.
Would I recommend people to Buy MATIC
MATIC ever since the launched in 2017 has risen to an appreciable value. The team that gave a significant value to Ethereum from 2017 are the same team that manages Polygon MATIC. The project has a great future and I will recommend the token for people to buy for future benefit.
With a proper technical analysis traders can find scalping trading opportunities with MATIC and make enough profit. And to traders who lack knowledge of scalping trading can buy for it has a great potential in the coming months.
CONCLUSION
For the second week of the trading competition, I have selected and traded on MATIC/USDT as my second trade of the week after carefully making my own analysis about the token.