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Hey guys,
Welcome to the first week of the SteemitCryptoAcademy trading competition.
In this first week, I will be joining the team of professors @abdu.navi03 and @Shemul21
QUESTION 1
NAME OF PROJECT TOKEN
- CHAINLINK
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INTRODUCTION
Chainlink which was founded in 2017 is a decentralized network of nodes that provides information to on-blockchain networks from off-blockchain sources through oracles.
Simply put, Chainlink is a decentralized oracle network that provides real-life data such as live scores, current fiat currency values, etc to blockchain smart contracts.
The platform has its native token known as Link which is used in the payment of services on the network.
In as much as the Chainlink ensures the security of its network using an ERC20 token, its consensus mechanism is better than that of Ethereum because it makes use of Proof-Of-Work which Ethereum is still working on implementing.
This makes Link a governance token on the platform as it guarantees users the right to decision making and the more link tokens a user has the more influence he or she will have on the platform.
EXCHANGE IT CAN BE TRADED ON
Below are the list of exchanges Link can be traded on.
- Screenshot
TECHNICAL/TEAM BACKGROUND
Sergey Nazarov who joined the cryptocurrency revolution in 2011 Is the co-founder and CEO at Chainlink labs.
His aim is to change the way society share and distribute vital information, how they distribute wealth, etc.
- Screenshot
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Some other information about the Link token is seen below;
| MARKET CAP | $6,975,033,440 |
|---|---|
| FULLY DILUTED MARKET CAP | $14,936,634,000 |
| VOLUME | $599,089,391 |
| MCAP/VOLUME | 0.08573 |
| CIRCULATING SUPPLY | 467,009,549.52 LINK |
QUESTION 2
I was optimistic about the token because of the perfect signal it gave when I carried out my technical analysis on its USDT pair.
Also, there has been so positive news regarding link on various crypto news channels.
- Screenshot
As regards how high it would rise, I can't say for sure but with how it is going, it can see more bullish movement this week and it also has a higher probability of giving over 100 percent increase in value before the end of this year as it is way below its all-time high at the moment.
QUESTION 3
In this section, I will be carrying out a technical analysis on LINK|USDT pair on my real MT5 trading app.
I started by applying a moving average indicator and a Stochastic indicator.
The moving average which is a trend-based indicator will serve to make apparent the actual trend direction by filtering out minor price fluctuations.
On the other hand, the stochastic will aid me in identifying when the asset is either overbought or oversold at different timeframes.
I started my analysis on a 1hr timeframe after applying the above-mentioned indicators.
- Screenshot
From the above screenshot, we will see that the current price is at the support region which is an indication of a price reversal.
On the other hand, the EMA is found to be above the price chart which shows a bearish price movement.
Looking at the Stochastic indicator, it is found to be at the oversold region which signals a bearish-to-bullish trend reversal.
After observing the above on a 1hr time frame, I switched to a 15mins time frame because it will help me to manage risk by reducing the size of my stop-loss. After all, I am trading with small capital.
On the 15mins time frame, I observed that the current price is also at horizontal support which signals a possible pullback.
Also, the EMA was found to be trending above the price chart which is an indication of a bearish price movement.
Looking at the stochastic indicator, it was found to be at the oversold region which signals a bearish-to-bullish price reversal.
The above confluence made a take-a-buy position on the LINK|USDT pair.
- Screenshot
- Result
- EXIT
My stop-loss was set just below the support and the take-profit set in consideration of the stop-loss in a ratio of 1:1.
QUESTION 4
In as much as the coin is very much promising due to its use cases, I do not plan on keeping it for long because I am an intra day trader so I only analyze and enter the market in search of quick profits.
I exited the market as soon as the price touched my take-profit which was set in consideration of my stop-loss in a ratio fo 1:1.
QUESTION 5
I'm not a financial adviser so I do not recommend anyone to buy or sell because the cryptocurrency market is volatile and very risky.
Therefore, anyone that wants to either buy or sell should do their own research in other not to lay blames on anyone in the cases of losses.
CONCLUSION
Chainlink as we have seen is a decentralized oracle network that provides real-life information on smart contracts.
In as much as its native token (Link) is promising, it is always best for a trader to apply proper trade management during trading in other to minimize loss should in case anything goes wrong.