[XRP/USDT]-Steemit Crypto Academy | S6T3 | Team Trading Contest Post for Reminane
Greetings guys,
This week we are doing the trading contest once more and this will be my second trade of the week with the team Reminane which has been created by the professors @nane15 and reminiscence01. Without wasting much time let us get into the assignment.
1.The name and introduction of the project token, and which exchange it can be traded on, project/team/technical background, etc.
I will be trading the Ripple token this time round. Ripple is a token which is abbreviated as xrp. This time round we are once again dealing with a network that is named ripple. The ripple network is a payment system that uses cryptocurrency. The cryptocurrency used on the network is its native token which is known as Xrp. The ripple network was created specifically to deal with the traditional banking system of making payments where the network helps users to make payments to individuals around the world at a very low cost
Even though the network was created to rival against the banking systems, it is still well adopted by banking systems who use it to receive and to also make payments.
Rather surprisingly for ripple when it was firstly introduced there was no public sales of ICOs but it managed to gain momentum as it managed to get private investors. This allowed the network to raise an amount close to about 296 million dollars. The ripple runs a ledger which allows it blockchain to run on. The ripple ledger as it is called does not use the PoS or PoW consensus algorithm but rather it uses its own its own consensus protocol which is called the Xrp ledger. The ripple ledger helps the network to work centrally in a way of reducing the normal time it cost regular blockchains to confirm a transaction. As I said earlier, the transaction fees on the ripple network is also less as compared to other networks.
The ripple network was founded by 2 gentle men who are known as Chris Larsen and Jed MC Caleb in the year 2012. It is being operated and run by Ripple labs Inc.
The xrp token is a well known asset which is traded on well known and trusted cryptocurrency platforms. Such as Binance, Houbi-global, Kraken, coinbase, etc.
coinmarketcap.com
The xrp token can also be traded in different ways, such as futures trading, leverage trading, spot trading etc.
2.Why are you bullish on this token today and how long do you think it can rise?
The xrp token has gained a lot of popularity over the years due to many reason. Apart from the fact that the token did not have an ICO sale but was able to make it to an all time high worth 3 dollars is a must believe asset in. For now we are seeing a study uptrend after making a bit of downtrend.
The xrp token is a traditional like form of payment system where uses will obviously run to because of its low transaction fees. As the people are interacting with the network they will have to use the native token of the platform before they can actually use the network. So as the network is being used it is to the advantage to investors as we will see the token make rise to the top.
coinmarketcap.com
The xrp token is currently priced at 0.8396 dollars according to coin market cap. It is currently ranked at number 6 according to market cap on coin market. It has a circulating supply of 48.12B XRP according to coin market. A volume of $2,107,723,166.
coinmarketcap.com
The all time high of the xrp token is at 3.84 dollars, that figure was reached on Jan 4th 2018. Its been 4 years since it tested the previous resistance of 3 dollars that almot broke the 4 dollars mark and we know that the next time it will try to break the 3 dollars and make an all time high of 4 dollars. For now it is trying to break the 1 dollar resistance.
3. How to parse the token? (In this part you should preferably use the knowledge you have acquired in these weeks of learning at the academy, for example follow what I learned in my class or that of my teammate.)
For this part of the assignment, I will be making technical analysis on the xrp token before going into the market. The indicators I will be using are the median indicator, the EMA indicator and the RSI indicator. All this will be used on a XRP/USDT chart on the trading view website.
The median indicator is an indicator that makes its readings based on the trends. In an uptrend market, the color of the indicator is green. In a bearish market the color of the indicator is purple.
The 200 EMA indicator is an indicator that also helps in determining the price of the asset. When an asset is uptrending, we notice that the EMA line will be below the price action. When an asset is falling or in a bearish phase the EMA line will be above the price action.
The RSI is also another indicator that is used in the determining the strength of an asset. When the line of the RSI is above 70, it shows that the asset is in an overbought region thus it might begin to fall soon. When the line is below the 30 line it shows that the asset is in the oversold zone hence the asset might start to rise soon.
Trading view
In the 5min XRP/USDT chart above, we can see clearly that the market is uptrending. The 200 EMA line is below the price point, the RSI is also showing a reading above the 50 mark. All this scenarios confirm a bullish market.
Before taking my position we notice that the median indicator has switched from the green color to the purple color which means it is going on a bearish run.
We see a red candle stick forming hence a good point to make an entry into the market. I have made an entry into the market buying the asset worth 11.11 USDT and getting an amount of 13.2792 XRP as seen in the screenshots below.
Screenshot from houbi-pro app
Screenshot from houbi-pro app
4.Your plan to keep it for a long time or when to sell it?
I plan on keeping the asset for a short time. As soon as my take profit level is reached I will take profit and leave the market. The xrp token is showing real momentum now and I believe the best thing a trader can do now is to perform scalping which is why I have used the 5 mins chart and also the 200 EMA which is good for spotting trading opportunities in the short time.
5.Do you recommend everyone to buy? Give reasons for recommending or not recommending.
I recommend the xrp token to traders. Even though I have made a short trade on the token I still recommend a long term buy for traders. A long term and hold for about 5 years will be an ideal buy for traders as the asset is showing real momentum. But for the market situation now I will recommend a short buy other wise known as scalp trading. The market now is also ideal for futures trading.