Hi guys, I sincerely welcome you all to my blog again. I will be attending my third trade entry for the Trade-competition in the SCA lessons as I continue to make my participation with Team-fredquantumkouba. I will be handling ADA Coin this time and with a detailed overview and trading analysis.
Overview of the ADA Token
The Cardano blockchain is the parent platform in which the ADA coin is built as its native coin. The Cardano was developed as a third-generation blockchain which is a composition of the ore existing blockchain in the cryptocurrency space. The Cardano blockchain was developed with the concept of harnessing the best features observed from the workings of both First and Second generation blockchain networks (Bitcoin, Ethereum, and Litcoin). In doing so, this platform avails itself of better security and reliability more than what is obtainable in Bitcoin, More p2p transactions with faster execution and cheaper fees than the Litcoin as well as more implementable contracts vis-a-vis what is seen in Ethereum.
It was developed sometime in 2017 with its name derived from the Italian Polymath Gerolamo Cardona. Just as earlier said, the Cardano is sustained by its native coin called ADA. The coin name is also derived from the Mathematician Ada Lovelace who is also known to be a computer programmer. This network runs on the Haskell which happens to be one of the highly secured programmed software languages that guarantee less risk associated with errors and DDoS attacks. The Cardano blockchain is a robust one that runs on the PoS consensus mechanism. The ouroboros PoS is truly a well-secured user with verifiable proof. One good thing about the Cardano network is that it has a relatively established romance with government regulations so as to strengthen the integrity of the cryptocurrency existence and in extension has a maximum supply of 45 billion ADA coins. Holders of this coin are allowed to participate in governance and voting relative to software changes.
In this project, the Cardano blockchain has demonstrated a relatively dependable and trusted system to help get more onboard investors inflows. The project has been on its heels to continue on its improvement in both technological implementation and attaining decentralization, development to enable the attraction of qualified scientists into its system as well as investors entrance. A typical scenario of some of this listed project potential is the launch of the Alonzo Hard Fork in 2021 which brought about a surge in the price value of ADA coin to over 100% as well as the deployment of over 100 smart contracts on its Blockchain.
Asset Analysis
This token can be found in the following exchanges; Binance exchange, Coinbase Exchange, KuCoin, Kraken, etc. As of the time of the report, the ADA coin is valued at $0.8422, with a Market Cap of $23,319,083,399 and a Circulation Supply of 33.63N ADA.
Sometimes on 9/3/2021, the ADA attained an all-time high with a price value of approx $3 with volume trades with 24has $5.24B and it's currently at its low presently with asset Price of $0.8459 and Volume traded 24h of $3.36B. From Volume traded, the ADA coin is ranked #7 in the coinmarketcap site with a Market Dominance of 1.69%
TRade Analysis
I will still be maintaining my trading strategy which happens to be one of my best that gives me a promising trading experience while in use. The RSI indicator, as well as the EMA (Short and Long Periods) indicator, introduced in the chart analysis to help guide on how best to make trade positions.
From the chart analysis from the Tradingview site for a Buy Setup for ADA/USDT trading pair, We can observe the short EMA period crossing above the Long EMA period which invariably signifies an Uptrend and upward movement of prices. There are also confirmatory signals from the RSI indicator which also shows that pre-headed towards the overbought region and as well crosses this region.
Market Entry Price - $0.862
Take Profit - $0.900
Stoploss - $0.812
USDT used - 19.9984000 USDT
Amount of ADA purchased - 23.2 ADA
Fee charged - 0.00004127 BNB
For a Sell Scenario Setup, after carefully choosing both the take profit and stop loss point, trade was monitored to also ensure profits are taken as soon as asset process appreciated.
Market Exit Price - $0.844
Total ADA Sold - 23.2 ADA
Amount of USDT purchase - 19.58080000 USDT
fee charged - 0.00004038 BNB
Profit/Loss made from the transaction: -0.4032 USDT
There was high market volatility that made for the little negative variance observed in the profitablity of the trading strategy.
Recommendations
The Cardano blockchain which is powered by the ADA token is an ever-evolving platform that has a combination of pre-existing first and second-generation blockchains (Bitcoin, Litcoin, and Ethereum) features to improve the cryptocurrency experience. It has continued to make its system more decentralized with more implementable techs capable of boosting its investor's participation in the network. It has continued to be reliable with availability and access in top Exchanges. For now, it may be classified as a penny cryptocurrency which would hence encourage relatively high purchasing amounts of its coins for HODL.
Thank you Prof @kouba01, this is my third trade entry for the week.
Hello @xkool24,
Thank you for choosing our team to participate in the 1st week of Season 6 of this trading competition, hoping that you will make gains during this period, you deserve a Total|7.5/ 10 rating, according to the following scale:
My opinion on your choice of pair:
The end of 2021 has been eventful for the Cardano blockchain. Indeed, the announcement of smart contracts in mid-September was not the expected moment of glory. Technical problems accumulated and it was not until the end of the year that the first applications arrived. Even if the network is still very slow, we can hope that the year 2022 will be that of the consecration of the Cardano ADA model. In any case, this is what the transaction volumes on the network and the purchases of the whales suggest.
My opinion on your trading style:
Faithful to the same analysis strategy by the combination of RSI and two MA lines. As you can see, the market volatility is very high which has contributed to the little negative variance observed in the profitability of the trading strategy.
We thank you again for your effort and we look forward to reading your next article.
Sincerely, @kouba01
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