XLMUSDTPREP Buy (Long)-Steemit Crypto Academy | S6T3 | Team Trading Contest Post for Reminane

Hello everyone, today's trade was better than I expected. I was fortunate to be on an uptrend ride after the price hit my entry. There were some manipulations that would have kicked me out with my SL but fortunately, I managed to escape.

The asset I chose was Stellar. I had a trade yesterday which resulted in a loss with this same asset. Fortunately, today yielded more profits which cancelled out the loss incurred yesterday. Without wasting much time, let's go!

Yesterday I talked about Ripple, Stellar is like the other version of Ripple. It was created to allow fast and easy transfer of money across the globe. It was created after a disagreement the co-founder Jed McCaleb had with the future of Ripple. Stellar was created in 2014 with Jed McCaleb and Joyce Kim. From Jed McCaleb, "The whole original design of Stellar is that you can have fiat currencies and other kinds of forms of value run in parallel with each other and with crypto assets."

The native token of Stellar is XLM. Stellar charges extremely low fees for transactions. Transactions cost as low as 0.00001 XLM. The network uses Stellar consensus protocol to achieve decentralisation, security, low latency and flexible trust on the network.

At the time of working on this post, XLM had a price of $0.2178 and was ranked #31 in the list of cryptocurrencies on CoinMarketCap. It had a market cap of $5,371,738,115. Its maximum supply is 50,001,806,812 XLM and out of it, 24.67B XLM were in circulation.

XLM recorded its all-time high of $0.9381 four years ago. It has fallen by 76.78% compared to the current price. It recorded its highest within a month period today at a price of $0.2182. It hit its lowest price of $0.163 within a month period. This is the lowest price recorded in 52 weeks.

XLM is an old project and as such, it is available on many exchanges for trading. You can trade XLM on popular exchanges like Binance, Gate.io, KuCoin, Huobi Global etc.

I traded XLM yesterday expecting it to bearish but I got kicked out of the trade with my SL. Before I slept yesterday, I made some analysis and expected the price to drop and be bullish in the morning, and so I placed orders for a long position.

One other reason I was bullish on XLM was that it hit its lowest within 52 weeks not long ago. I expected the price to increase because it had found support and was in an uptrend for some days now. BTC had also broken its resistance level of $42k and I expected it to get to $45k which it did. A rise in BTC was surely going to cause some significant increase in the price of altcoins.

I think XLM could get to $1 in about 6 months from now. Dips like its recent one usually follow up with strong reversals which could be capable of setting new high prices.

The XLM asset I chose to trade was XLMUSDTPREP. This asset is available on Binance futures. Some of the screenshots I used in making my analysis were taken yesterday. I still used the basic analysis and indicators for this trade.

I drew the support and resistance levels in the 1-day timeframe and moved to a smaller timeframe.

In the 4 hour timeframe, I identified price reaction zones and drew lines to represent them.

I switched to the 15 minutes timeframe to identify a good entry and exit. I drew more reaction levels to help me spot the good entry and exit.

I then placed an order to buy (long).

I expected the price to fall and react with the level I had identified. To confirm whether the price was going to fall, I used the RSI to check the overbought and oversold condition of the asset. The asset was overbought for quite some time and was approaching an oversold condition and so I maintained my position.

The details of the trade are in the next section. For this trade, I was in class when my order was triggered and so I couldn't take screenshots of the start of the trade.

As usual, my plan is to make profits within a short period. This trade lasted not more than 3 hours.

I bought 921 XLM at 0.21276 USDT. My TP and SL were 0.21497 USDT and 0.21082. This was the TP and SL set when I placed the order yesterday. I later updated the SL several times to prevent me from being kicked out of the trade before it even started. This was a good call for this trade because BTC along with most altcoins was on the rise and so I expected that no matter how low the price went it was going to bounce back.

In class when I was monitoring the trade, I also update my TP and SL when I noticed the huge candles spiking up within a short period. I updated my TP to 0.21900 and my SL to 0.21471.

From the chart, you can see the behaviour of the price. With my old SL, I would have been taken out of the trade. I had enough margin and so I had no fear of my account liquidating and so increasing the SL was the right call. The price hit my TP after a while.

I made a profit of $6.25359 USDT.

Stellar is one of the old projects out there. I'd recommend others to buy and buy now if they are interested in this token. TP could be set close to its highest price within the past three months. This is not a piece of financial advice though, I am only sharing my expectations. It is important to note that you'd need risk capital.

I was quite fortunate I paid attention to the candlesticks and changed my TP and SL. Candlesticks give a lot of information. From the candlestick's massive increase within the short period, I could tell a whale was in the market and I could take advantage of this.

Most importantly, I gained more experience from this trade. I hope you all enjoyed reading my post.