LUNA/USDT Sell | S6T3 | Team Trading Contest Post for Reminane
Hello crypto enthusiasts, this is a new week of the crypto academy and a new diversion as well, 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 LUNA coin.
For week 3, I will be joining the trading contest team of professor @nane15 and professor @reminiscence01, here is the contest entry.
The name of the project token I will be focusing my trading on is the LUNA coin.
Terra LUNA is the native token of the Tera network, the coin is a stable currency pegged against other currencies of the Tera network, LUNA coin is used as the network fee, participation in staking and delegating to proof of stake consensus on the Terra platform. The Terra blockchain uses the DPoS consensus mechanism to reach consensus, meaning the highest delegator of the LUNA coin gets to reach consensus before others provided they stake the highest to validate new nodes.
The LUNA coin is used in keeping the security of the Terra platform and used in confirming transactions on the network, the LUNA is pegged to its platform stable USD known as UST, whereby, when the UST adjust in volatility, the LUNA tends to cover for its leverage and the same goes for the LUNA coin as well.
The Terra platform is a blockchain-based platform that permits the creation of several stable coins pegged to fiat currencies, The Blockahin uses the Delegated Proof of Consensus to arrive at new blocks validity, the Terra Platform was founded in 2018 by Do Kwon and Daniel Shin.
LUNA can be traded on multiple exchanges such as Binance, KuCoin, Huobi Global, Bybit, and lots others as the currency also support several cryptocurrency pairs.
I am optimistic about the LUNA coin today because it is one of the great choices of investment we have seen in the crypto market for a while now, I could recall sometimes ago the LUNA coin was still $40 about four months ago, but now the coin has skyrocketed to the price of $95, I believe the coin has future potentials as it is used to participate in staking on the Terra Platform.
I am also optimistic that the coin is among the Top10 list of coins as it is currently in rank 8, with a 361,932,981.73 LUNA circulating supply with a $72B fully diluted market cap, the coin reached its all-time of $104 fourteen-day ago.
I will be carrying the analysis on the 15min chart, the first thing I was able to notice is that the coin has been traveling in a downtrend for a couple of hours since today.
Then, I was able to mark the trendlines of lower lows and lower highs from the market, I am using the strategy learned from professor @reminiscence01's class of psychology of trends.
- I was able to confirm that the market is traveling in a downward market framing series of lower lows and lower High.
I took my entry when I notice that the market has retraced from its opposite trend and it's about to frame a new lower low.
I set my stop loss above my entry to the previous Lower High and my take profit below, my order was executed in a 1:1 risk reward.
Screenshot of my filled order on binance futures below.
[Source](Binance Application)
Sell order executed at 93.4USd, My take profit at 91.9USD, and the Stop loss at 94.08USD.
[Source](Binance Application)
My trade is now showing a profit.
[Source](Binance Application)
I do not plan to hold the coin, what I plan to do with the coin is just to trade only, I do not plan on holding for so long, despite that the LUNA coin presents as a good investment, the LUNA has been rising for the past days and which means we get to see a new downtrend or likely not, the other reason I am not buying is the amount of the coin, I regard the LUNA coin to be too expensive, I had rather prefer to buy other altcoins at small value than to invest big in the LUNA coin.
So to justify my answer, I would prefer not to hold the LUNA coin for so long rather than trade it at 50x 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 trade.
Yes, I would recommend people to buy the LUNA coin provided they can afford to purchase large units of it, just as I said in my introduction, the LUNA coin is the native coin of the Terrablockchain which uses a DPoS consensus, meaning the coin has a solid project backing it up and users who have a large amount of it can delegate and have a chance of winning consensus. So it is possible to recommend the purchase of the coin for a future rise and one can say the coin is here to stay.
The Uniqueness of the LUNA coin is that the coin is pegged against UST which is a stable currency, meaning we can regard the price of LUNA to be stable as well, and what is important is that when there get to be a little downside of the LUNA coin, the UST is burnt to keep the LUNA stable, so that makes it to be a solid project.
In this article, today, have analyzed the LUNA coin and the proper trading set up for the coin where I execute a sell trade at the point I witness the coin to be depicting lower lows, as well I get to confirm my sell entry with the strategies of market psychology of trends.
cc;
professor @nane15 and professor @reminiscence01