CHRUSDT (Buy) | S6T4 - Team Trading Post for Fredquantum-Kouba01 Traders Team
Hello everyone, this is the fourth week of the steemit trading contest. This contest was organized to ensure that we make our trading skills practical. This is my third trade for this week and I’m in a team called Fredquantum-Kouba01 Traders Team. The token I have selected for this analysis is the CHR token and the details are highlighted below.
The name and introduction of the project token, and which exchange can be traded on, project/technical/team background, etc.
The Chromia blockchain was launched in 2019 in Sweden. This means it hasn't been in the cryptocurrency ecosystem for a long time but it has made a lot of impact in the world of crypto. The main reason the CHR blockchain was introduced was to enhance the usage of decentralized applications and also the development of these decentralized apps. Scalability is a major project in Dapps and the CHR blockchain was developed to battle this problem. So far it has been successful as we can say that the CHR blockchain enhances a lot of scalability.
Several Decentralized Apps can be built on the Chromia blockchain. The proof of work consensus mechanism provides security for the CHR blockchain but its main consensus mechanism is the Byzantine Fault Tolerance.
When this platform was about to be launched, they conducted their own funds and used it to launch the blockchain platform. Any blockchain that is present in the CHR blockchain is connected to a unique validator node.
The native token of the Chromia blockchain is the CHR token. This token is used to pay the transaction fees within the blockchain. The block validators within the blockchain gain rewards in the form of the CHR token. This is a way of rewarding these validators for their efforts in maintaining the platform.
The CHR token can be found and traded in so many exchanges. Some of the exchanges in which we can find the CHR token are Binance, Huobi pro, KuCoin, PancakeSwap, Poloniex, Bitrue etc.
Why am I optimistic about this token today, and how long do I think it can rise?
I am very optimistic about this token because the Chromia blockchain takes it's security from the proof of work consensus mechanism. It also has it's own consensus mechanism which is known as the Byzantine Fault Tolerance consensus mechanism.
The CHR token is also very reliable as it is used as the native token of this large blockchain. The CHR token is also used to pay for the transaction fee which shows that it has a very bright future. The CHR token has a low circulating supply which means that it will definitely have high demand which will make the price continue rising.
Let's now look at the statistics of the CHR token on CoinMarketCap.
CoinMarketCap
CoinMarketCap
Looking at the screenshot above, we can see that the CHR token has a market cap of $296,048,836.47. The coin is ranked at #184 which is understandable because it hasn't been in existence for long and the project is still developing.
We can also see that the coin reached its highest point on the 20th of November 2021. On this day, the CHR token reached a price of $1.50 and this is till date the all time high of the token. Looking at the image above, we can also see that the CHR coin has a circulating supply of 567,369,439 CHR. This shows that the coin has a low circulating supply which means that the demand for CHR is very high in the market and subsequently the price will eventually rise for its holders to make some profit out of it.
Analyzing the token
As I always do, I will be using the candlestick in making this analysis. This is because the candlestick is very clear and reduces a lot of noise in the price of the asset. Then I will add three different indicators which I will be using to confirm my entry point in the market. The three indicators I will be using include; EMA indicator, Parabolic SAR indicator and the RSI indicator.
Screenshot from: Tradingview
Looking at the screenshot above, I started by marking the support and resistance levels. We could see that the price continued making an uptrend after it retested at the support level. This is a signal of a continuous bullish trend. I then went on to add the EMA indicator. We can all see in the chart that the EMA indicator is below the price which also shows a signal that there is a bullish trend in the market.
Screenshot from: Tradingview
I then went on to add the Parabolic SAR indicator. We can see that the dots were forming strongly below the price which is a signal that there is a bullish trend. I goes on to confirm the earlier signal generated by the EMA and the support and resistance levels. So my entry point is becoming confirmed gradually.
Screenshot from: Tradingview
Then finally, I proceeded to add the RSI indicator to confirm my entry point. We can see from the chart above that the RSI Indicator is moving towards the 30 region. This is a clear signal of a bullish trend and it goes on to confirm my entry as the two previous indicators suggested. I then placed my take profit and stop loss points and then made an entry into the market.
After this I went to the Huobi pro exchange and placed my buy order. The details of the order can be seen in the screenshot below.
Screenshot from: Huobi pro
The trade was executed at an average price of $0.554786 as seen in the screenshot above.
My plan to hold it for a long time or when to sell?
For me personally, I would prefer that I would hold this coin in my wallet for a long time. For now the short term signal of the CHR coin based on my technical analysis is not all that good. So I have made a decision to sell it now and then enter the market at the right time.
But for my long term plan, I will buy the CHR token and keep it in my wallet and hope to make some profit. This is because the CHR has a new project which is very strong and it shows that the project will keep developing. Due to this good project I believe that investing in this project will help me gain some profit from this project. When more Dapps are built on this platform, they help in the growth of the project hence I have good plans to invest in this project.
Do you recommend everyone to buy? and the reasons for recommending/not recommending.
I will recommend the CHR token to everyone because of how strong the project is. Though the project is a newly launched one, it has started seeing tremendous growth which shows that the CHR will make a very good source of investment. At this point, the CHR project keeps growing when a lot of Dapps are built on this blockchain. And I have realized that there are a lot of Dapps that are being built on the blockchain and more still to be built so the project will continue growing and investing in it will yield a positive result.
However, I will advise that anybody ready to invest in the CHR project should do their own research on the project before making any decisions. This will aid them gain more knowledge on the token and project at large. This kind of research will reduce the risk of being caught out by some fake information about the project.
Other information about the token.
In this section, I will let you know the various social media handles that we can follow to get information on this project. We can also use some sites to get information on the CHR token and I will be sharing it all here for everyone to get access to.
Screenshot from: Telegram
The above screenshot is the Official Telegram channel of the chromia blockchain and a lot of updates have been post hear for telegram users to get access to.
Screenshot from:Twitter
The above screenshot is the official Twitter handle of the Chromia blockchain and users of twitter can constantly follow this handle for more updates on the CHR token and anything related to the Chromia blockchain.
Anybody also interested in more information can visit the Chromia official Site for more information on the blockchain.
Conclusion
From the discussion above, we can see that the chromic blockchain is developing rapidly despite the fact that it has just be launched recently. The development of several Dapps on the blockchain ensures that the blockchain keeps growing.
This is the reason the CHR token keep rising and the bullish trend is still very visible at the moment. The project of the chromia blockchain looks promising and any investment in the CHR token is likely to yield some positive results.
Cc:
@fredquantum
@kouba01