[LINK/USDT] - Crypto Academy / S6T4- Team Trading Contest Post for Team Reminane
Asset Traded - Link Coin (LINK)
For today's trade, I chose the LINKUSDT pair which has the Chainlink coin cross. LINK is the native token of the Chainlink Oracle platform which is a decentralized network of nodes, a community of data providers, and smart contracts that facilitate the collection and transfer-proof data from off-chain sources to on-chain sources, this creates an open-source access layer from multiple blockchains. Chainlink was developed to tackle the problem of real-world data sourcing and the interoperability of different blockchains. Chainlink service is adopted in the creation of complex smart contracts that require external data to fully execute the given instructions.
The Chainlink platform and the LINK coin were introduced in 2017 by Sergey Nazarov and Steve Ellis, they wrote and introduced the project's white paper in 2017. The Chainlink project was officially launched in 2019, serving as a medium between off-chain data sources and blockchains. Chainlink to date has managed up to huge amounts in smart contract transactions utilized by over one thousand projects.
The Chainlink project developers held a public sale in which they raised over $32M in funded revenue. The initial coin offering sale (ICO) of the LINK token was held on the 19th of September 2017, where the price of the LINK token was $0.110.
Interestingly, the Link coin has proved to maintain a positive ROI against the Dollar as its first public listing price started around $0.110 in 2017, a significant hike in the price of LINK was encountered in August of 2020 when its price traded up to $19.10. But an all-time high price was encountered in May of 2021 when the price of LINK traded around $52.2, followed by a reclining effect on the price of LINK before the bearish rally of 2022 first quarter started.
Chainlink's cryptocurrency LINK is ranked 24th on coinmarketcap's official website and as of the time of this publication, it has a unit price of $17.39, a market capitalization of $8.12B and fully diluted market capitalization of $17.38B. LINK has a market dominance of 0.38%, which is calculated based on traded volume and supply of the coin, the volume traded in the last 24 hours is $735.02M and a circulating supply of 467.01M LINK
Trade Analysis
I analyzed the LINKUSDT chart using the tradingview platform. I analyzed on a short-term basis for me to capitalize on the intraday movement of price. I combined the RSI and the EMA indicators with price action to capitalize on a Buy position via margin trading on the Binance exchange.
Looking at the LINKUSDT chart on tradingview, I observed the following;
LINKUSDT 30 MINS CHART
Observing the chart above, the price is trading with a range forming equal highs with higher lows, this implies the exhaustion of selling pressure in maintaining the range-bound. I noticed that the RSI indicator line crossed above the 50 midpoint, and also the 20 EMA crossing and trading below the 50 EMA line, which both are indications of possible bullish movement of price. Similarly, the price formed support after the formation of a bullish engulfing candle at a support level, and with the bullish momentum in play, I anticipate further upward movement of price.
Following the formation of more bullish candles signaling the presence and willingness of buyers in pushing the price upwards. I executed a buy order at $17.39, with stoploss placed at $17.20 and take profit placed at $17.60. The risk to reward on the trade was executed at ratios of 1:1 RR. I executed the trade via futures margin trading on my verified binance exchange account, using the leverage of 5x.
After a period of waiting, I observed that the preceding development of price moved in the intended direction, as the price was maintained above the EMA lines and the RSI stayed above the 50 midpoint. Price eventually moved into profit and take profit price was triggered.
The entire position was closed when the price approached the take profit price, I closed with a 3.06% profit.
Based on the above trade, there are no suitable recommendations as the trade was based on short-term analysis and margin trade.
Thank you team Reminane for this opportunity.
Hello @beckie96830 , I’m glad you participated in the 4th Trading Competition at the Steemit Crypto Academy. Your grades in this task are as follows:
Observations:
Great chart analysis. A multi-timeframr analysis could have been superb.
Recommendation / Feedback:
You havr done great research on LINK. Thank you for participating in this trading competition.