ATA/USDT | S6T2 - Team Trading Post for Team Frontline
Hello and welcome to my blog as I take you all through the trading completion for this week. This is my fourth entry for this crypto trading lesson and I would be taking us on the ATA toke. My team still remains the Frontline-Team comprising Professors @abdu.navi03 and @shemul21.
An Overview of the ATA Asset
The ideology and concept of the Automata Network is the one that was developed to handle the secrecy feature of the blockchain system. It is a decentralized platform that helps in providing a private layer for dApps while interacting across blockchains. This simply means that the protocol helps in the privacy usage of the dApps that run on blockchain networks while interacting. In doing so, it enables some use-cases like the Anonymous voting and Miner Extractable Value.
It is a known protocol that enables the Web 3.0 dApps with a guarantee for Privacy of process, efficiency, and effective transaction process in the network. It is that layer that guarantees these features in a typical web 3.0 platform relative to its ability to ensure privacy, transparency, and censorship.
This platform was developed sometime in 2019 by a team Co-founded by Zheng Leong Chua and Deli Gong. The ATA token is the native token as well utility coin that powers the Automata Network while in use. In handling Governance issues in the network, the ATA token is used in voting and another platform/ decision making geared towards the development of the system. The validation process by miners/validators are rewarded through the use of the ATA token as well as the payment of gas fees is also done with the AT token.
It's anonymous voting service is known as the witness which offers low transaction cost, off and on-chain voting as well as different privacy level based on the requirements of the protocol relative to whether it's a private or public Blockchain. It's has a wider adoption rate based on its support to Ethereum and BSC networks.
Trade Analysis of the ATA Assets
The trade analysis for ATA token has a price value of $0.3931 as of the time of this report and a Market Cap of $67,705,877. It has a Circulating supply of 172,252,000 ATA tokens in trade but a seemingly 1,000,000,000 ATA as total supply created for this project. This invariably tells us that there is a long way for investment profit-taking open in this project.
In the last 24hrs, we can observe a price change of -$0.03061 representing a 7.22%. In the same period, we have a price peak of $0.4248 and lows of $0.3917. The trading volume of $22,323,335.41 shows a 42.91% drop vis-a-vis the last 24hrs indices. It currently ranks #455 based on the volume traded in the coinmarketcap site.
Let's also look at the historical price trend of the ATA token from the chart analysis. On the 28th August 2021, the ATA token was observed with an all-time peak price of $1.8466 and Volume traded same period as $884.46M. whereas a low price value was observed sometime this year on February 24 2022 where the value was $0.328 and volume traded as $11.34m.
Technical Analysis for ATA token
In my chart analysis, I deployed the use of two Moving Averages and the RSI Indicator which help to ascertain the strength of a trend in given levels. For the Moving Averages, they were set at both long and short period MAs which help us get a clearer signal.
When there's a crossover, this simply tells us if we should anticipate a bearish trend or a bullish trend depending on the scenario. When the shorter period MA crosses above the longer period Moving Average, there should be bullish movement of trend and the reverse of this crossover is for a bearish trend.
From the chart analysis, as indicated, we observed the blue line indicator (short MA) crossing above the red line indicator (longe MA) and hence the bullish movement seen. But we can also observe that the RSI did not really go with the direction of price trend for long instead we have a bearish trend which also saw that that price reversed and started making a bear run.
I will wait and observe the trend as the crossover signal did not come with a sustained, therefore I will wait to see a trend in the oversold levels (at bands 30) which would help anticipate a possible trend reversal. At this point, if reversal, a valid break upwards would be my preferred Buy Entry position.
Buy Trade Position
As soon as I observed a reversal on-trend and especially from the RSI Indicator, I made my buy entry. This was also confirmed, the distance between the two Moving Averages which seem apart and with the short MA still observed above the long period MA. Risk Reward ratio set at 1:2.
Market Price - $0.3911
Total assets used - 19.94610000 USDT
Fee - 0.00003750 BNB
Filled Amount - 51 ATA
Stop loss - 0.3779
Take profit - 0.4143
Sell trade Position
No trader wants to lose and hence a better sell entry should be one observed above the buy entry order so As to maintain that profit path.
Market Price - $0.3931
Total assets used - 51 ATA
Fee - 0.00003742 BNB
Filled Amount - 20.04810000 USDT
Profit/Loss: +$0.102
Recommendation
The ATA token has attended a price peak of almost $2 per token and with the current value observed less than a dollar, the ATA token still stands a better chance to change the fortunes of holders of its coin. A long-term investment may be ideal for traders who would want to hodl this token. The Automata Network plays a significant role in the Privacy observed in the execution of dApps on different and multiple Blockchains, hence this would also be a driver for more investment in the ATA token.
Thank you professor @abdu.navi03. This is my fourth trading entry for the week.