Steemit Crypto Academy | Season 3 - Week 5 || Market Patterns and Blockchain Projects

Good day fellow participant of this steemit cryptoacademy, this is Week 5 of Season 3. I hereby present my homework post on the topic above. The post is in response to the homework given by professor @imagen

1.) Choose at least 1 of the following cryptocurrencies.
Axie Infinity AXS
Chilliz CHZ
Cardano ADA
VeChain VET
Make an investment. Show screenshots of the process. Why did you choose this cryptocurrency? What is it Market Capitalization? What is it position in the cryptoasset rankings? What is the objective of the project behind this coin? Who founded this coin? Show the roadmap. What is the specific purpose of the cryptocurrency?

Answer to Question 1:

What is Cardano ADA :

Is one of the most rapidly developing blockchain assets. Since the time of its launch in 2015, ADA has risen to the top ten cryptocurrencies in terms of market capitalization, generating a lot of buzz. Its technology is rapidly evolving, and it aspires to compete with Ethereum in the development of a vast blockchain ecosystem.

ADA - Cardano is a digital token that may be used to hold value as well as transfer and receive cash, similar to all other cryptocurrencies. The Cardano cryptocurrency is based on the Cardano blockchain, a first-of-its-kind decentralized network built entirely on scientific and mathematical concepts by cryptographic and engineering specialists.

The Ada cryptocurrency, which may be used to transmit and receive digital funds, is based on the Cardano blockchain. This digital cash is the currency of the future, allowing for quick, direct transfers that are secure thanks to cryptography.

Cardano's cryptocurrency, ADA, is settled via the Cardano Settlement Layer (CSL). Smart contracts will be run on the Control Layer, which is still in development. Cardano's hierarchical structure allows it to be used as a medium of trade as well as for the creation of smart contracts.

Making Investment with Cardano ADA

Cardano ADA can be bought on cryptocurrency exchanges like all other crypto asset. Therefore I will do my investment on Binance Exchange. I will be buying Cardano ADA with BUSD with rlthw screenshots below.

• Step 1 : Selecting the pair. This is where we will choose the pair to exchange with, and this is what I have done below, exchanging with BUSD.

• Step 2: This is where I select the quantity of ADA that I want to buy and the percentage of BUSD I am willing to buy with, then I click on buy.

• Step 3 My investment is now in my wallet as you can see in the screenshot below.

Why did you choose this cryptocurrency?

In comparison to other cryptos, I believe Cardano is a worthwhile option. Despite the asset's trials and tribulations over its history, I feel it has a brighter future. Cardano's scarcity can lead to an increase in both value and demand over time because to its limited supply of 45 billion coins.

Its upgraded proof of stake algorithm and two-layered design, as previously said, are additional unique aspects that attract investors from all over the world.

Investors are drawn to the city for more than just its development and IT properties. The fact that the ADA has such a diverse set of applications is a big impetus.

What is it Market Capitalization? What is it position in the cryptoasset rankings?

Cardano (ADA) is currently trading at $1.27 USD, with a market value of $40,901,475,220 USD and a circulating supply of 32,041,069,499 ADA. This cryptocurrency has seen a price movement of -5.12% since yesterday. The 24-hour volume of ADA coin trading on 10 active markets is 746,601,932 USD.

Source

The current ranking of Cardano ADA according to coingecko.com is #5.

What is the objective of the project behind this coin

Cardano is described as a decentralized open-source smart contract platform that aims to beat competitors by offering more extensive functionality and design options. The blockchain system is divided into two layers, one of which handles all Cardano coin transactions and the other of which contains smart contracts and is known as the computational layer. The protocol design intends to improve the blockchain's security, scalability, and interoperability, making it appropriate for financial and governance applications.

Who founded this coin?

Cardano ADA was founded by Charles Hoskinson. Charles Hoskinson is a technology entrepreneur and mathematician from Colorado. Prior to entering into cryptography through industrial exposure, he studied Number Theory and Mathematical Logic at Metropolitan State University of Denver and University of Colorado at Boulder.

He has had a range of interesting roles in the public and private sectors, including creating two Bitcoin-related start-ups, Invictus Innovations and Ethereum. He founded the non-profit Cryptocurrency Research Group in September 2013 and was the inaugural chairman of the Bitcoin Foundation's education committee.

What is the specific purpose of the cryptocurrency?

• Cardano ADA intends to address the issues of scaling and infrastructure that originally surfaced in bitcoin, a first-generation cryptocurrency which pioneered the concept of digital currencies, and ethereum, a second-generation cryptocurrency which broadened coin usage cases to include smart contracts. Cardano is a cryptocurrency that intends to overcome scalability, interoperability, and sustainability issues on cryptocurrency systems.

• Cardano intends to make cross-chain transactions possible by using side chains, that would let two parties to perform transactions off-chain. It's also looking into how institutions and people might selectively provide transaction and identity info to enable the adoption of crypto for daily transactions and trading.

• Furthermore, it aspires to create a "constitution" of protocols, according to its developers, in order to avoid awkward hard forks like the types that happened on ethereum and bitcoin.

2.) Explain in your own words what the "Evening Star" pattern consists of. What is its hit rate?

In technical analysis, the evening star pattern is the negative counterpart to the morning star. Because the evening star represents a top reversal, if it comes after an uptrend, it should be taken seriously.

A trio of candles make up the Evening Star. The evening star's first candle should be light in color with a huge body. A star represents the second candle. It's a shorter candle that doesn't contact the previous candle's body. The candlestick is a Doji star because there is a gap between the two real bodies.

Because the buyer couldn't raise the price until it was significantly higher than the previous period's closing, the star represents the first manifestation of weakness. The following stars support this vulnerability. These candles should be black in color and close tightly after the previous candle has been extinguished.

It takes more than just recognizing the three main candles on the crypto chart to recognize the evening star candlestick pattern. Understanding prior pricing behavior and where the pattern emerges in existing trends is required. The folllowing are what we should note from the diagram above

• Look for higher highs and lows in the market to determine if the market is currently in an uptrend.

• THE BIG BULLISH CANDLE

This is the result of substantial purchasing pressure and the continuance of an existing uptrend is a large bullish candle. Because there is no evidence of reversal at this time, traders should only seek for long trades.

• THE BIG BEARISH CANDLE

The first sign of new selling pressure can be seen on this candle. This candle starts a new downward trend by opening lower than the preceding candle's closing price.

The evening star pattern is made up of three candles, one for each period, as indicated previously. On the first day, bullish candles are long, and asset prices are moving in a bullish direction. Momentum began to decrease the day after the star appeared, following the steep rise in prices reflected by the bull gap.

The second day, however, was still a day of mixed emotions, with bullish and negative sentiments coexisting. When the market opens on the third day, there is a gap down, indicating that momentum is reversing and traders have taken a short position. The evening star pattern was confirmed when the price closed substantially lower at the end of the third day.

3.) Explain in your own words what the pattern "Abandoned Baby" consists of. What is the percentage correct?

Source

In the actual world, an abandoned baby pattern is an uncommon reversal signal. The abandoned baby may be a bear at times and a bull at other times. In either case, it suggests that a present trend may be reversing. Fortunately, the pattern's shape closely matches its name — a small doji on its own (the baby), the surrounding candles a step higher or lower (the parents) — making it easy to spot.

A three-bar reversal formation is the abandoned baby candlestick pattern. It resembles the morning and evening star formations in appearance.

When it appears after a sharp rise or fall, it is a very reliable reversal signal. It is fairly similar to the morning and evening stars, but there is one significant difference.

From bars 1-2 and 2-3, real bodies and shadows cannot overlap. This makes it a very rare, one-of-a-kind, and dependable pattern.

THE FORMATION OF "ABANDON BABY" PATTERN

The bearish and bullish abandoned baby candlestick patterns are generated by three candles: one doji and two candles with genuine bodies.

THE BEARISH ABANDONE BABY CANDLESTICKS

A bearish abandoned baby candlestick is a particular pattern that consists of three candles: one with rising prices, one with holding values, and one with falling prices. Technical analysts believe that this pattern indicates at least a short-term reversal in a price that is currently heading upward. Only roughly 50 times in the last two decades has this pattern appeared. Short-term bearish performance is frequently followed by the signal.

This pattern requires a large green (or white) candlestick in an uptrend, followed by a doji that spans over the first candle's closure.

THE BULLISH ABANDON BABY CANDLESTICKS

This is a bullish reversal pattern, meaning it appears near the end of a downtrend and signals the trend's reversal. Three candles make up the bullish abandoned baby, the first of which is bearish and is followed by a gap to the downside. The second candle turns into a doji, while the third gapes up and finishes up being a positive candle.

When the pressures of selling stocks shift to buying the stock, this pattern emerges. This happens when investors expect a trend shift due to fundamental or psychological factors.

The second candle covers the first and third candles in either a morning or evening star pattern. The first and third candles do not overlap in a bullish pattern. This indicates a price disparity at the start. Prices are being driven up by both sellers and buyers. As a result, a void is created.

4.) Perform analysis for 3 and 7 recent calendar days for Bitcoin Do you identify any patterns? Show screenshots

Bitcoin 3 recent days analysis.

If we examine the image above, we will see that there was a resistance at the early hours of 26th of July after an Uptrend bullish pattern the previous day at point A of the diagram above. Also we notice the three line strike of three bullish green Candle and a large red candle that put an end to the movement of the 3 green candles. Another bullish pattern came up at the point C.

There is also an evening star pattern at point B. There is an uptrennd of 3 green candles before this formation which shows that buyers are buying more of this coin and this cause an uptrennd move in price.

7 days bitcoin Analysis

In the chart analysis above, we can see that there is a bullish Uptrend in A1, A2 and A3. At the area circled, we see a three line strike of bullish Candle that was halted by a big red candle causing a prise reversal.

CONCLUSION

Trading without proper knowledge and application of technical analysis is equivalent to flipping a coin. Profit and loss have an equal chance of occurring. This is very risky in the trading world. Even with low margins, one must always keep the profit in mind. Technical knowledge is the key to a trader's success with the least amount of work and time.

The usefulness of technical analysis comes in the fact that it aids traders in determining optimal entry and exit points, i.e., when to invest in stocks and when to withdraw earnings. When we have all this knowledge, it will surely help us trading profitably