REPOST - Trading Competition - Crypto Academy / S6T3 - Homework post for pelon53.
This is a repost of this original post @pelon53 @steemcurator01 @steemcurator02
The name and introduction of the project token, and which exchange can be traded on, project/technical/team background, etc.
Why are you optimistic about this token today, and how long do you think it can rise?
How to analyze the token? (using the analysis knowledge learned from professors’ courses) - the most important part.
Do you intend to keep it for a long time or when to sell it?
Do you recommend everyone to buy? and the reasons for recommending/not recommending.
INTRODUCTION:
Good day, @pelon5 and every member of this great community. Welcome to my entry post for the season 6 week 3 trading competition of the steemit crypto academy, today I will be working on Dogecoin.
Today is my trading day two, week 3 and I will be emphasizing Dogecoin, also my technical analysis will be on dogecoin before I proceed to the technical analysis of doge, I would like to give a brief description about the token.
What Is Dogecoin? Dogecoin, also known as (DOGE) is an open-source peer-to-peer cryptocurrency. some considered it to be an altcoin and some call it a meme token. Dogecoin was launched in December 2013, Dogecoin has a replica image of a Shiba Inu dog's logo. Dogecoin was created as a joke, Dogecoin's blockchain technology was derived from Litecoin. A very key feature of Dogecoin is that it was listed at a low price and has an unlimited supply.
Dogecoin which is known as an open-source cryptocurrency was started in 2013 by two developers called Jackson Palmer and Billy Markus. They based the proof of work using the same as that of litecoin, though dogecoin started as a joke it was so lucky to have a loyal community of supporters who were ready to trade it and use the token as a tipping currency for content on social media.
Lately, 2017 to be precise dogecoin experienced a significant rise in price together with cryptoverse which unfortunately fell back in the year 2018. Again, dogecoin had a great boost in 2019 of about 1Billion market capitalization, this boost was a result of Dogecoin being listed on a popular exchange called Binance and a world billionaire endorsed dogecoin which made it explode and so many holders of dogecoin were happy with the profit.
Which exchanges it can be traded
Dogecoin has been listed in some popular exchange which has turned the ecosystem of the coin around. here are some of the major exchange.
Project / Technical information of the coin/ team background
Dogecoin marketed itself to the world using a Shibu Inu logo. It was built on script technology with unlimited supply and was a more adaptable, user-friendly version of Bitcoin.
In 2014 January, the Dogecoin community donated about 27 million Dogecoins worth which is approximately $30,000 to sponsor a Jamaica bobsled team trip to the Winter Olympic Games. March 6 of that same year, the Dogecoin community also donated $11,000 worth of Dogecoin to support community development by building a well in Kenya.
Lately, as of Oct 2021, dogecoin's market cap was ranked number 10 and a market capitalization of $31.9 billion, but currently according to the coin market doge is ranked number 13 with a market capitalization of $16,874,725,284 and Volume per day is $883,181,986 dogecoin has a circulating supply of 132.67B DOGE with a total supply of 132, 670, 764, 300 DOGE.
Dogecoin has more probability of rising because it has some potential as bitcoin, bitcoin was created in 2009 and
started gaining popularity in 2011 because of its good potential, so as dogecoin which was created in 2013 since then has been striving to gain popularity. not until 2019 when it was listed on the Binance exchange and was endorsed by Elon musk, this has brought a great turnaround to the Dogecoin ecosystem.
Dogecoin continues to trade above its early 2021 price of $0.02. dogecoin's worth never fell below $0.30 during the past few months, despite China's threat to ban cryptocurrency mining. The decision came as a shock which led to downward pressure on the whole cryptocurrency market.
Dogecoin has gained value ever since the tweet by the billionaire and becomes more widely accepted as a medium of exchange in companies, financial institutions and dozens of small businesses now accept Dogecoin as a medium of payment, including the NBA's Dallas Mavericks, which allows customers to purchase both tickets and merchandise through BitPay.
With all the points above, I will like to hold doge for a considerable period but not too long because I know it is going to surge higher and more profit can be made through the surge and the developer of dogecoin are working as a team to make the blockchain more accommodating.
This section is a very important part of trading, this is where we make use of all our knowledge of the steemit crypto academy. Here I will be doing my technical analysis based on DOGEUSDT using the trading view platform and thereby place my live trade on my Binance exchange.
In this section I will be using Price action supported with an indicator to do my technical analysis on DOGEUSDTjust to make sure my entry is perfect, as we've been thought earlier in our classes combination of price action and technical indicators show traders strategic points like an entry point, stop loss and take profit.
On DOGE/USDT H1 Timeframe I noticed an uptrend which was supposed to be the first thing a trader should check because the trend is the basis of our technical analysis. Then I noticed the market was forming a higher high and a higher low till the end of the uptrend.
Then I made use of the technical tool on trading view to mark out the higher high and the lower low. Then I moved to a lower timeframe which was 15min and I saw the same thing forming the same market structure. So I added RSI to the chart at 15min to see if the market will give me an entry.
Getting to the RSI I noticed the price was neutral and at the main chart, the market is retesting the higher low, and we Leary according to teachings that if the price can break the higher downward then a reversal is bound to happen. I waited patiently to allow the price to cross above the 50 lines upward.
As soon as the price crossed upward, I went to my Binance exchange platforms to place my trade at entry =0.1226, stop loss =0.1210, and take profit =0.1250. After placing the trade, I confirm the trade.
1 hour later I went back to check the trade and I noticed the price has hit the take profit. This is the outcome of the trade below.
I would like to invest more in dogecoin before the general crypto market starts surging but I would not be holding it for a longer time because it's a coin that is driving too1 much by the news, though all cryptocurrencies are news-driven for the fact that it was endorsed by some billionaires in the world they can decide to tweet and its start dropping in value.
But for now, that we are expecting a pump in the cryptocurrency market it is still advisable to hold then after the pump we can sell part of our profit then hold it for a little more time then sell off all because anything can happen in the cryptocurrency market.
Yes!
I will recommend dogecoin to everyone because it's one of the so-called meme tokens that is still standing today. so many meme tokens have crashed away because people do not believe in holding meme tokens for long, but fortunately for dogecoin, its community is embedded with loyal traders that were ready to buy and hold the coin.
Dogecoin is built on blockchain technology, just like Bitcoin was built on blockchain technology and other cryptocurrencies. Blockchain technology is considered extremely difficult to hack by hackers who want to break into users' privacy and do away with users' private details, dogecoin is very secure to invest in.
I will like to encourage anyone buying doge as an investment to consider his/her risk management to not be too greedy and not to over-leverage on this token because more coins are coin up which might make the doge market unstable for a lifetime investment. considering a good risk ratio dogecoin is purchasable and more profit can be made. I am holding a considerable amount of dogecoin in my wallet which I hope by the end of this year will have yielded profit.
CONCLUSION
studying dogecoin has been an interesting thing, I was able to write about some history, the background of dogecoin, how it came to existence and some features of dogecoin blockchain, and the growth so far on the blockchain. I did my technical analysis on trading view, then I proceed to my Binance exchange to place my real trade using the futures trading option.