REPOST — EOS/USDT Sell | S6W1 | Team Trading Contest Post for Reminane”
Cover Page Created by me, @msquaretk | created on imarkup app
It's another week in the Crypto Academy. This is the week one of the trading competition. It's an initiative organized by the Admins of the Academy to allow us display our skills and test what we have learnt so far in the academy. I am in reminane Team for this week and I have made two posts for the two trades I have traded so far. So, in this post, I will be giving the full details of the trade I took today, the third day of the first week, Wednesday 23/02/2022. So, follow me closely as I will be analysing the asset.
The name and introduction of the project token, and which exchange it can be traded on, project/team/technical background
In this part of the task, I am going to be telling the name of the token I will be trading for the third day(23/02/2022) of the trading competition and the introduction of the project token, the growth so far etc.
The name of the token I'm going to be trading today is EOS. EOS is a native token of the EOS blockchain. The platform is a blockchain network which enables developer of decentralized applications dApps to host and run their applications. The platform developed by a company called block one in the year 2017. And in the year 2018, the company released it as open source.
During the time of launching, about 1 billion token was released as ERC-20 by the Block One company. This was to ensure the widespread of the cryptocurrency and to also enable users to launch the EOS blockchain upon releasing the software.
The CEO of he company "Block One" and his colleagues were greatly working towards the development of the blockchain at the early stage as they found a means to raise found to support the blockchain. About 4 million US dollar was raised to support the project during the initial coin offering (ICO).
EOS token or cryptocurrency are used for payment on the blockchain. Like I said earlier, the platform enables the developer to host and run their DApps on the network. However, it should be noted that the developers need to hold the native token, EOS so as to enable them have access to the resources and help build and run their DApps.
EOS was created in order to overcome the shortfalls in Ethereum blockchain. Hence, it's seen as a competitor of Ethereum blockchain. The main aim is to give users scalability and interoperability. They aimed that EOS will handle millions of transaction per second compared to 15 transactions that Ethereum can handle per second.
EOS uses consensus protocol different from that of Bitcoin. Instead of mining in Bitcoin, the block producers are used. The block producers generate blocks accordingly and they will be rewarded with EOS token based on the number of blocks they have generated. There's a system designed as to keep the total supply of the EOS not greater than 5% in case block producers want to misuse the process because of their greediness. EOS token can be stored in many wallets such as My ether wallet, Ethereum wallet, metamask etc.
According to Coinmarketcap, EOS is ranked 47 and I currently trading at $2.21.
It has market capitalization of $2, 169, 338, 107
Volume of $271, 170, 943
Circulating supply of 981, 232, 394 EOS
Total Supply of 1, 047, 818, 574 EOS
The screenshot below shows the details of highlighted above.
Screenshot from Coinmarketcap | SOURCE
Exchanges it can be traded on
EOS can be traded on many exchanges. Some of the Exchanges it can be traded on are, Binance, Gate.io, Huobi Global, Coinbase Exchange, Bybit, Kucoin etc.
EOS is also paired with many other token such as USDT, BTC, USD, KRW etc. The screenshot below shows the exchanges it can be traded on and the token it's paired with.
Screenshot from Coinmarketcap | SOURCE
Now, having seen the exchanges it can be traded on, let's quickly move on to technical analysis I did on trading view and see why I'm interested in selling the asset EOSUSDT.
Technical Analysis of the Token, EOSUSDT
Now, I am going to be showing I did the technical analysis on trading view platform before I took the sell entry on my verified Binance exchange.
Upon opening the chart of EOSUSDT, I added the indicators, parabolic SAR, Relative strength index (RSI) and Stochastic oscillator to the chart based in the strategy I want to use. The price is seen on H1 timeframe being bearish as the price was making lower lows and lower highs. A tool called trendline is drawn to connect the lower highs of the price to tame the price. When the price retraces back and touches the trend line, it's expected that the price falls. So, trendline acts as the dynamic resistance.
Also, a sell order will be taken when the Stochastic oscillator enters the overbought region and the lines cross. As it will be seen in the screenshot below, the lines of stochastic cross at the overbought region signifying that the sellers are taking over the market already. The cross of the lines is a sell signal.
Further, RSI also confirms that the price may reverse as the line of RSI is very near th overbought region. So we have many reasons now to determine and decide whether to take a sell order on this pair. Let's see the screenshot below first.
Screenshot from Trading view | SOURCE
I have already had the clue as to which side the price may turn to based on my analysis. So knowing this, I switched to lower timeframes to see if I can see entry since I'm interested in trading the sell and continue the trend to the downside. Upon switching to 5 minutes timeframe, I saw the the Stochastic lines are already crossed on the overbought region of the I window which is a sell signal.
Also, a bearish divergence has occurred. A bearish divergence occurs when the price makes higher highs and RSI line makes lower highs. When this occurs, it signifies that the buyers are weakened and the volume is decreasing. It's a sell signal. We already have about three reasons to take the sell trade:
- Price is at the dynamic resistance line drawn on H1 timeframe
- The stochastic oscillator lines crossed at the overbought region
- Bearish divergence occurred when RSI makes lower highs and price makes higher highs.
If we want to wait again for parabolic SAR before taking the trade, we will need to wait to see that the Parabolic SAR points appear above the price. At least two points should appear above the price. But since we have three reasons already (confluence) it may not be necessary to wait for PSAR again.
See the screenshot below.
Screenshot from Trading view | SOURCE
As soon as I have the confluence, I opened an instant sell order at $$2.214 with the stop loss placed above the entry point at $2.272 and take profit at the nearest support level at $2.067. See the screenshot below.
Screenshot from Trading view | SOURCE
Below is the screenshot showing the EOSUSDT order at point of taking it. It shows the stop loss, take profit and market price. Since I'm interested in selling immediately, I used the market price. This is my Binance exchange platform and i performed a margin trade on EOSUSDT. See the screenshot below.
Screenshot from my Binance App
Then upon clicking the short, a page appear where i needed to confirm the sell order. I did and the trade was executed. The trade is still running. I will show the result of the trade on Saturday if it can be shown before the end of today.
Screenshot from my Binance App
Some hours later after the execution of the trade, the price hits my take profit. See the screenshot below.
Screenshot from my Binance App
Your plan to keep it for a long time or when to sell it?
I do not plan to hold the trade for too long. The Analysis I did is not for long trade. It's like intraday analysis and when the price hits the take profit or stop loss, I will be out of the market. And of course since it's a margin trade, I'm not in the possession of the asset and hence i can hold it.
Do you recommend everyone to buy? Give reasons for recommending or not recommending.
Yes! I will recommend anyone who wants to sell at the asset when i sold it to do the same. The recommendation to sell it at the time would be because of the confluence I saw on the chart based on my analysis and strategy. But it's also important i tell whoever wants to sell to manage risk very well because cryptocurrencies are very volatile.
Conclusion
In this task, I have successfully did the analysis of EOSUSDT on trading view and taken a sell trade on my verified Binance exchange platform. This is the third day of the trading competition and I have used a different strategy different from the one I used in the previous two days.
Thanks to the Admins and our Professors for bringing up this initiative. In fact, it's a way to put into practice what we have learnt so far. The result of each trade will be uploaded on the Google form together with a short video showing them.
Consulted Article 1 SOURCE
Consulted Article 2 SOURCE
Written by @msquaretk