IOST/USDT Sell | S6t4 - Homework post for pelon53.
Hello crypto enthusiasts, this is a new week of the crypto academy contest, we are being required to analyze a token and carry out a real trade using the analysis we have gotten from the previous classes, I will be analyzing the IOST coin.
For week 4, I will be joining the trading contest team of professor @pelon53 on Team Investors, here is my contest entry.
The coin I will be analyzing today is known as the IOST coin.
IOST is a decentralized network that comprises several dAPPS, wallets, and nodes, the project's aim is to meet the scalability needs of digital currency in the day to day economy, the IOST network claims to be much faster when processing transactions due to its high level of scalability, the projects has its native token known as the IOST token which is a token used for transaction for the payment of charges, process peer to peer transaction as well.
IOST project was founded by various developers and investors who have led the early team of project web3 in the past years, the project was founded by Jimmy Zhong, Justin Li, Sa Wang, Terrence Wang, Ray Xiao, and Kevin Tan in the year 2018, the IOST tends to solve the blockchain scalability as the platform used the "Proof of believability" to reach consensus, and the platform can generate transactions of 100,000 per seconds.
The IOST token can be traded on most exchanges, Top exchanges like Binance,kuCOin, and Latoken, trade the IOST coin, exchanges images are shown below.
The below image shows several DAPPS explorable with the IOST network.
I am not bullish about the IOST token today rather I had used the word bearish as I have seen some hindrance in the IOST coin for the past few days, the IOST market has been down today by 6% which shows there have been lots of selling pressure form the coin causing it to depict large lows.
The IOST coin also had 24 hours trading volume of $1,067,664,269 which has been down by 53% which shows there has been more pressure on the selling power since the past day, so this answers my question of why I am not totally bullish about the token.
I will b carrying the analysis of IOSTUSD on the 15 min chart, where I was able to identify the support zone and the resistance zone, after forming these levels, I get to notice that there is a consolidated movement in the IOSTUSDT market has market been moving between resistance and the support zone I was able to identify the TEMA 25 indicator to be moving ahead of the market price which means the IOST market is in a bearish phase and what I could witness as well is that the market is about to move on a downtrend movement.
At the resistance zone, the market quit rising and it falls to the previous low, while at the support zone, the market refused to drop and rises back to the previous high, the image shows the resistance and support zone of the IOSTUSDT market, after identifying the support and resistance level, I notice that the market is about moving towards the resistance zone and the confirmation came to form the MACD indicator as well as I saw the MACD be crossing the zero line and moving to the lower part.
From the chart, I was able to get my entry to sell at the moment the market is about falling and the TEMA 25 indicator is traveling as well. I took the order to sell which was executed at a 1:1 risk-reward, the stop loss was set below the resistance zone, so if the market went back to the resistance level, my loss level would at least be minimized.
I took my trade at the entry to sell at CMP of 0.043267USD, the take profit of 0.04140USDT, and my stop loss at 0.04573USDT.
A screenshot of the filled order can be seen in the image below.
NO, I do not plan to hold IOST for long as the coin has been making a bearish movement and the coin might keep dipping so it might be a bad idea to purchase the IOST coin, for now, a future might come where I would love to buy, but no certainly with the current movement in its price as the coin is not in a bullish phase right now.
So to justify my answer, I would prefer not to hold the IOST coin for so now, I would rather prefer to trade it at Isolated 11x leverage on a 15 minutes trade and make a profit and fall out as quickly as possible in case the market goes the otherwise of my intraday trading.
YES, I would recommend everyone to buy the IOST coin, but not at the moment as the coin is still making a bearish movement, so it is better if one can wait to see the next day's movement in the IOST token before taking the decision of buying or not.
Buying the IOST can still be a great idea when an individual possesses the coin, he/she can participate in staking the coin on the IOST projects and make a serious earning with it, and holding the coin can help investors in getting the reward pool by delegating to nodes.
In this write-up today, I have analyzed the proper trading setup for the IOST coin where I execute a sell trade at the point I witness the coin to wants to consolidate and range between the support and resistance zone, I was able to confirm my entry with the help of TEMA indicator and MACD indicator, as I took the decision to sell when I saw that the market is now traveling below TEMA and also the MACD is moving toward the zero line which confirms a downtrend market.
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