ALGO/USDT | S6T2 - Team Trading Post for Team Frontline
Hi guys, hope we are doing well irrespective of the weather conditions especially those of us in the Sahara with intense heat. We will surely pull through just as usual. I will be making my third post for the week on the crypto trading competition with Team - Frontline.
Overview of the ALGO token
The Algorand Blockchain is a decentralized platform that runs on the Proof of Stake consensus mechanism. It guarantees full participation of users in its platform with security and speed also guaranteed. This platform ensures that all Blockchain concerns are eliminated that hinder the full adoption of a given Blockchain that offers decentralization, Security, and Scalability.
Algorand Blockchain was developed by a team of learned professionals headed by Silvio Micali whose main onus is in cryptography. Just as mentioned earlier, the Algorand network runs on the Byzantine which gives users the choice of new block formation relative to the number of stakes therein by the user.
Just in addition to its numerous functions, the Algorand has this Transaction Finality ability that makes it handle and sign off transactions in a cycle without having to fork. This simply entails that only a given block can have the required number of signatures required to sign off a transaction in a given cycle.
The system is also positioned itself in a manner that it Self Selects in reaching a consensus mechanism. The system is observed to randomly and secretly select users who participate in the validation process of a given block.
Another security feature this Blockchain guarantees is the Replaceability of the User in every given cycle of block validation. This ensures that the same users are not repeated in consecutive block validation for the avoidance of Blockchain attacks. This also goes with the launch of the Algorand 2.0 protocol in November 2019 that allows for an expanded creation of dApps on its network without having to compromise security and system performance.
Trade Analysis of the ALGO Asset
At the time of this report, the Algorand (ARGO) asset is valued at $0.8191 with a Market Cap of $5,424,456,018. It has a Circulating Supply of 6.62B ALGO and a Max supply of 10,000,000,000 but with a total supply of 7,059,570,297. The Price trend in the last 24hrs has peaked at $0.8609 and Low price of $0.8112.
Traded Volume under the same period is $350,039,400 which shows high investors participation in the project. And a market Dominance of 0.28% is observed. No wonder we have a market ranking of #29 due to volume traded as captured in the coinmarketcap.
Moreso, the historical Price trend Of the Argo token was also captured from the chart analysis presented in the coinmarketcap site where the price was observed to attain a peak of $2.3122 and volume traded as $4.81B. Also, the price was at its lowest with a price value of $0.1483 and $6.5.24M for volume traded. The peak and Low prices occurred on 9th September 2021 and 15th March 2020 respectively.
Technical Analysis for ALGO Token
In this aspect, I will be looking out for signals from the indicators used on the chart analysis as observed in the tradingview site. Two of the Moving Averages were used. The Blue indicator line is the short EMA line while the Red indicator line is the Long EMA line.
Therefore when we see a crossover scenario where the Short EMA moves above the Long EMA, we should hence expect a bull trend but when this is the opposite we should definitely wait for a Bear trend. From the chart, we can observe a scenario with this crossover and the resultant effect of a bull run witness. Therefore we would either wait for another signal or take advantage of the already passed signal having in mind the Risk-Reward ratio.
The RSI Indicator was also introduced to know the strength of the trend at each level. We can observe the trend around band 45 which relatively shows that trend is getting to the Oversold level as well having more selling pressure. We should expect a possible rebound/ trend reversal any moment.
For a Buy Scenario
Buy Order (Market price) - $0.8203
Total asset used - 19.68720000 USDT
Filled Amount - 24 ALGO
Fee - 0.00003624
Stoploss - $0.8190
Take profit - $0.9019
For a Sell Scenario
Considering the take profit and stop loss, the price trend was monitored for the period set. We can only say that we have made profits if the market is observed above the buy entry order level of the trend. Therefore a sell order was made with this detail below;
Sell Order (Market price) - $0.8254
Total asset used - 24 ALGO
Filled Amount - 19.80960000 USDT
Fee - 0.00003634
Profit/Loss: +$0.1224
Recommendation
I will request for this token to be acquired for long-term investment given to its clear projects and development-driven ideology given to the concept and ideology behind its launch. Also from its historical price trend, the ALGO Token still has more potential to peak just as seen sometime in September 2021 when prices got to over $2/ALGO. From the comment section in the coinmarketcap site, users believed that the token still remains the future despite the low price or Penny cryptocurrency status it inherits now.
Thank you professor @abdu.navi03. this is my third trading entry for the week.