Hello steemians, I would love to join Prof. @reddileep and Prof. @abdu.navi03 to welcome each and everyone of us to week one of the crypto academy trading competition. Today, I will be trading SOL/USDT pairs on spots trading to make some good profits. If you reach the requirements, you could join me to do same by reading up the competition rules on this link.
Introduction to SOL
In the last year, 2021, I’m sure most of us must have heard a lot about SOL. The coin which had a growth of 150x in the span of a year. For those of us who don’t know so much about this token, I have you covered.
SOL is the ETH of the Ethereum blockchain. It is the native token of the SOLANA blockchain. This simply means, it is used to cover all transaction fees, on-chain governance processes etc. So basically, you can’t do anything of the Solana network without having the SOL tokens in your wallet.
Solana is a blockchain which runs with the Proof of Stake consensus mechanism. It was introduced in 2017 by Anatoly Yakovenko. The team behind the project was known as Solana Labs and today we can all see that Solana is a successful project.
SOL is ranked 4th with a market cap of $29.633184,195.89 and a circulating supply of 319.929,369 SOL. At the moment, the market price for SOL is $92.62 and in the last one year, it achieved a low of $11.49 and a high of $260.06.
SOL is a huge project so there are a lot of exchanges that support it. For example
- Binance
- KuCoin
- Bithump
- FTX
- Huobi
- OKX
- Coinbase
SOL is one of my favorite coins, I really enjoyed my investment in it last year. For today, I decided to make a buy trade on the coin. This is because my analysis tell me that there will be a bull run in the market. It is just a short term intra-day trade for some quick profits and I plan to sell at the resistance level.
SOL is among the top 10 most valuable coins in the world and this is because of its transaction speed and low network fees compare to all other blockchains. Because of these reason, I affirm than SOL stand the chance to rise to even a thousand dollars in the next 2-3 years.
From my analysis chart above, I used the Ichimoku cloud and the Parabolic SAR with some price action support and resistance lines.
First of all, the senkou span A crossed the senkou span B to change the colour of the cloud to to green and this simply means a bullish trend reversal.
The parabolic SAR was also beneath the price action and this confirms a bullish trend. Also, with the support and resistance lines I drew above, I figured out where I should place my take profit level and my stop loss. For risk management, my take profit was placed just below my resistance line.
First, I made a buy trade at the market price on spot trading SOL/USDT.
I changed the trade type to an OCO trade in order to include my take profit price and stop loss. We should all note that, when using the OCO feature, for buy trades, you trade on the sell side and for sell trades, you trade on the buy side.
On the trade,
Take profit: $93.5 (below the resistance level)
Stop loss: $89.2
**
Here is the confirmation of my trade. All I have to do now is wait for the trade to be filled. Hopefully, it sells at my take profit level.
Well, since this is just an intraday trade, I plan to sell at the resistance level. Aside from that, I’m a big fan of the Solana project and plan to hold the coin for as long as the project exist.
Solana has great potentials to surpass even BNB. It has a transaction speed of 45,000 TPS.
I would recommend everyone to buy SOL long term for so many reasons.
Fastest Network: Solana has the fastest network in the crypto ecosystem. Transactions are validated in 1 second because of its 45,000 TPS technology. Currently Solana is still in the Beta Network and plan to increase its transaction speed x8. This will lure more developers and users to the platform
Cheaper transaction fees: Solana offers lower fees for transactions on the network which is much better than the fees on the Ethereum blockchain.
SOL use-cases: The Solana blockchain currently has a high number of users on the platform daily and there’s still great potentials to have more. Since SOL is highly used on the Solana blockchain for covering transaction fees and staking operations, its of good importance to invest in the project while the markets are still low.
SOL has great potentials and is surely the coin to invest in long-term. Today, I made a buy trade on SOL, hopefully I pray for zero losses. I so much thank the Professors for all they have taught me.
CC: @abdu.navi03