Repost [XRP/USDT] - Crypto Academy / S6T2- Team Trading Contest Post for Team Reminane
Hello everyone, welcome to week 2 of the season's contest week. I'm very happy to be a participant in this competition. For this week's trading competition, I chose to join Team Reminane led by professors @reminiscence01 and @nane15, and I hope to make the best of this competition.
Asset Traded - Ripple Coin XRP
For today's trade, I chose the XRPUSDT pair which has the Ripple Coin cross. XRP is the native token of a digital payment platform RippleNet, which is built on a distributed public ledger called XRP Ledger which keeps the public record of payments handled on the platform. RippleNet payment system was developed to tackle the problems associated with handling international transactions in the traditional finance systems, thus creating a portal system that handles international transactions efficiently, faster, and securely.
The XRP coin and RippleNet payment system were founded by Chris Larsen and Jed McCaleb in September of 2012 under the name OpenCoin which aimed to provide alternative methods of processing international efficiently and faster, using a central token (XRP). Their theory was that a central token should be established and matched with the corresponding equivalent value of the asset to be transferred, such that when received, the corresponding value of the asset can be changed back to the intended asset from the central token.
Though there was no public sale of the token in form of ICOs, Ripple managed to secure funding from private investors, which has raised over $296M in various rounds of private sales from April of 2013 to Dec of 2019 which was the last recorded private sale called Series C which had Tetragon, SBI Holdings, Route 66 Ventures listed as the known private investors. The XRP can be traded on multiple exchanges like Binance, Huobi, KuCoin, etc.
Over time, the XRP coin has proved to maintain a positive ROI against the Dollar as its first listing price started around 0.005 in 2013, with an all-time high (ATH) Price encountered in January of 2018, when the price of XRP traded around $3.3778. Following the most recent crypto bullish rally, another significant high price was encountered as the price of XRP traded at $1.9650 in April of 2021.
RippleNet cryptocurrency XRP is ranked 6th on coinmarketcap's official website and as of the time of this publication, it has a unit price of $0.7254, a market capitalization of $34.7B and fully diluted market capitalization of $72.5B. XRP has a market dominance of 2.01%, which is calculated based on traded volume and supply of the coin, the volume traded in the last 24 hours is $2.8B and a circulating supply of 47.95B XRP.
Trade Analysis
I analyzed the XRPUSDT chart using the tradingview platform. I analyzed on a short-term basis for me to capitalize on the intraday movement of price. I combined the RSI and the EMA indicators with price action to capitalize on a Sell position via margin trading on the Binance exchange.
Looking at the XRPUSDT chart on tradingview, I observed the following;
XRPUSDT 15 MINS CHART
Following the trend movement, it is observed that the overall trend is bearish. I noticed that the RSi indicator line crossed below the 50 midpoint, and also price crossing and trading below the 50 EMA line, which both are indications of possible bearish movement continuation. Observing the chart, after an impulsive bearish move, the price stalled making sideways movement for hours. With the high bearish momentum in play, I anticipate further down movement of price after the formation of a bearish engulfing candle at a resistance level.
I waited for the formation of more bearish candles signaling the presence and willingness of sellers in pushing the price downward. I executed a sell order at $0.7229, with stoploss placed at $0.7300 and take profit placed at $0.7100. The risk to reward on the trade was executed at ratios of 1:1.5. I executed the trade via futures margin trading on my verified binance exchange account, using the leverage of 2x.
After several minutes of waiting, I observed that the preceding development of price moved in the intended direction, as the price was maintained below the EMA line and the RSi stayed below the 50 midpoint.
I managed to close the entire position when price pulled back after encountering a minor support level on the lower timeframe. I closed the trade position with a 1.17% profit.
Based on the above trade, there are no suitable recommendations as the trade was based on short-term analysis and margin trade.
Thank you team Reminane for this opportunity.