Crypto Academy Season 2: Week 6 – Reverse Strategy, Crypto Prices and Market – by @stream4u

Technical Details on Reverse Strategy

The reverse strategy is one of the most popular trading strategies used during technical analysis of any cryptocurrency asset. In cryptocurrency trading, there are a lot of different strategies that traders make use of so as to take advantage of the cryptocurrency market fluctuations to make more profit. For me, I really like the reverse strategy a lot but it also comes with pros and cons.

Reverse strategy is simply a trading strategy used during the technical analysis stage in order to take advantage of the price changes in the market. Using the reverse strategy, the trader would trade against the current trend of the cryptocurrency market, which can also be known as counter-trading because the cryptocurrency trader does the opposite from the normal trading actions. This means that during the technical analysis and the market is in a downtrend movement, the trader would put in buy order and buy the cryptocurrency asset. Also, if the market is in an uptrend direction, the cryptocurrency trader would place a sell order and sell the cryptocurrency asset and the trader would repeat the process using the strategy to take advantage of the market changes and trend movement so as to make more profit.

Let’s look at a real world example to explain how reverse strategy is used by a cryptocurrency trader. For example, A trader wants to trade NEO and is doing technical analysis on NEO to determine the situation of the market to known the best possible entry price. During the technical analysis, the trader sees that NEO is in a downtrend, the trader would try to enter the trade and buy NEO at the end of the downtrend so as to ride the next uptrend. As soon as NEO changes direction begins to move in an uptrend movement, the trader would try to sell NEO at the end of the uptrend movement. With this, the trader would buy NEO at the downtrend and sell NEO at the uptrend.

NEO/USDT chart screenshot of tradingview ofreverse strategy

Review of Coingecko

What Is a Coingecko?

Coingecko website is one of the most popular tools in the cryptocurrency world. Because of its uses and features, it has become one of the go-to websites when it comes to live price charts and statistical analysis of cryptocurrency assets. For me, coingecko is my favorite tools for checking accurate price information and statistical data of any cryptocurrency asset. I make use of coingecko so much that it has become part of my everyday technical analysis tools.

Coingecko is simply a website for data aggregation and showing live prices and statistics of cryptocurrencies. The website is https://www.coingecko.com and on the website, anyone can find the current and live prices and statistics of cryptocurrencies. The coingecko website has been operating since 2014 and has gone on to become one of the favorites and very popular data aggregation tool with a reputation of accurate price information and statistics of cryptocurrencies on coingecko.

Coingecko also has a mobile application that makes is easy to find price information and statistics of various cryptocurrencies in a much convenient way. Aside from live price information and statistics of different cryptocurrencies, coingecko also has cool features that helps it stand out from the rest. One of the features is the currency converter which makes it easier for users to convert price value from one currency to another. I find this feature very helpful because I can quickly determine the estimate I need to have available so as to buy a particular cryptocurrency asset.

For example, I can make a conversion to know how many vechain VET I can get with $100 and at the current time, $100 would buy an estimate of 809 VET, this is great because I can decide to send within the range of $100 to an exchange to buy about that amount of VET. Very amazing feature. Also, Congecko makes use of what is called real-time data feeds to show price and statistics data and information of different cryptocurrencies. This is great and beneficial for cryptocurrency traders and investors so as to make the best decisions.

The coingecko website has a very clean and easy to navigate interface that makes it user friendly for anyone to use. On the front page of coingecko, there are different sections that makes it easy to access different features and aspects of the website. The navigation bar section at the top has all the links to every section on the website with each section categorized into their own group. The navigation bar is made up of different navigational group links comprising of Coins, Exchanges, DeFi, NFT, Portfolio, Publications, Resources, Products, Community. Each of the different elements directs to different sections of the website.

The info and data bar section shows live info and data of all cryptocurrencies on coingecko. The quick link bar section has the main links that can also be found on the main navigational bar. The quick link allows users to have a quick access main features of coingecko. The coin section shows the live prices and statistics of all cryptocurrencies on coingecko and are ranked according to marketcap.

How Coingecko Can Be Helpful for you in a Crypto Market?

Coingecko is one of my favorite websites for cryptocurrency prices and statistics. For me coingecko very helpful when it comes to cryptocurrency investment and trading. I’m more of an investor than a trader because I like to buy and hold coins rather than short term trading. Whenever I want to invest in any cryptocurrency, I first look out for fundamentals. If the coin is listed on coingecko, it is a huge advantage for me because I can easily monitor the prices of the cryptocurrency and look out for important statistics like total and max supply, circulating supply, trading volume, exchanges that the coin is listed on, social media channels links…

All these are core basics when doing fundamental analysis for any cryptocurrency that I want to invest in. While a coin being on coingecko isn’t a guarantee that it would be a success, there is a big chance that the coin is a real project. That gives me more confidence to do more research and analysis on the cryptocurrency before making a decision to invest in the cryptocurrency.

Explore Coingecko Features With Information

One of the main benefits and advantages of coingecko website is its features. Coingecko is packed with a lot of friendly and usable features that improves the experience when doing cryptocurrency analysis. To explore the coingecko features, I will break it down into different parts. The header elements and The main body elements

The header elements

The header elements has three main sections;

• The top bar: The top bar contains important elements like the signup and sign in buttons, help, subscribe button, language toggle and day/night mode toggle.
• The navigation bar: The navigation bar is a very important element of the coingecko website. The navigation bar contains elements such as Coins, Exchanges, DeFi, NFT, Portfolio, Publications, Resources, Products, Community. Each of the different elements directs to different sections of the website
• Info bar: The info bar shows live info and data of all the cryptocurrencies on coingecko; total coins, number of exchanges, the total marketcap of cryptocurrencies, 24hr volume of total cryptocurrencies, bitcoin dominance, ethereum dominance and ETH gas in gwei.

The Main body elements

The main body element has two main sections;

• The quick links section: The quick links section contains quick links buttons for easy access to main aspects and features of coingecko. The currency toggle is used to switch between different currencies to become the default coingecko currency. The filter button is used to filter out any aspect of the website that the user wants to focus on. The Explore all coins button is used for exploring all the coins on coingecko in a single page. The recently added button is used for exploring coins that has been recently added to coingecko website. The categories button is used for exploring coins that has been grouped into different categories based on the category the coins belong to. For example grouping coins into different categories such as coins that are under DeFi, stablecoins, meme tokens etc.

• Coins info and data section: This is the most common aspect of coingecko because it is where most users visit the most when on the coingecko website. The coins info and data section contains the list of all the coins that are on coingecko, ranked according to their marketcap and each page cointains 100 coins, and there are multiple pages cointaining the coins in 100s. This section also contains important info and data of all the coins such as live price, 1hr, 24hr and 7days price changes, volume, marketcap and the last 7 days chart, all displayed at the side of each cryptocurrency. To view all the info, data and statistics of the coin, click on any coin to view it on its own page containing all the info, data and statistics of that coin. At the side of each coin, there is a star icon that is used to mark coin as favorite which is great for quick and easy access of the marked coins. This feature can only be used when signed in to coingecko.

Weekly Price Forecast for Polkadot DOT

Polkadot is one of the top blockchain platforms at the moment because of its features and capabilities. When it comes to blockchain platforms that are aiming to overtake ethereum, polkadot is one of them… The polkadot blockchain is simply a protocol with the capability of connecting various and multiple blockchains into one single network. Polkadot is building infrastructure for Web 3.0. On polkadot, there is much focus on security, scalability, and innovation making it one of the top blockchain platforms with great fundamentals.

On polkadot, there is parachain which is known as the individual blockchains on polkadot ecosystem. Also, there is relay chain which is known the main chain of the polkadot ecosystem. The great benefit of polkadot is that it gives users the ability to set up their own custom parachain that becomes becomes interoperable with other parachains once set up on the blockchain network. Using Polkadot users can also build cross-chain applications with lots of flexibility and freedom.

Key Features and Benefits of Polkadot

Some of the key features and benefits of the polkadot blockchain network and ecosystem;

• Scalability
• Security
• Interoperability
• Easy blockchain innovation
• User-driven network governance
• Forkless and future-proof

Polkadot Token – DOT

The token of Polkadot network is the DOT token which is known as the network token of polkadot. As a utility token of polkadot, there is a lot of usecase for the DOT token in the polkadot ecosystem. The main use of the DOT token is governance. As a governance token in the polkadot platform, users who hold DOT can participate in the governance of the polkadot platform and can also be staked so as to facilitate consensus in the network and also used to determine the network fees.

Polkadot (DOT) Wallets and Exchanges

Polkadot DOT is a very popular coin and in the top 10 based on marketcap. This means that there is a lot ofd support for this coin and a lot of wallets supports the storing of DOT. Polkadot DOT is currently supported by a number of top secure wallets such as desktop and mobile wallets like atomic wallet, trust wallet, exodus wallet and hardware wallet like ledger wallet. Also, because Polkadot DOT is a top cryptocurrency with a high marketcap, it is a lot of the top exchanges have listed DOT. Exchanges such as Binance, kucoin, kraken, bittrex, gate.io, OKEx, poloniex and more have listed DOT with differerent trading pairs.

Polkadot (DOT) Statistics

Polkadot DOT currently has a marketcap of $28,241,477,822 and on number 8 on coinmarketcap, with current price of over $30. Also, DOT has a circulating supply of 939,311,760.46 DOT, fully diluted marketcap of $32,619,025,887, total supply of 1,065,784,342 DOT.

Why I chose DOT?

I chose Polkadot Dot for a number of reasons. In my opinion, polkadot is one of the top blockchain platforms at the moment with a lot of innovations and development going on. Polkadot has an amazing team of talented developers who are always looking to improve and do better in the blockchain and cryptocurrency space. Before I chose to invest in any cryptocurrency asset, I always do my research carefully and carry out analysis on the project. Polkadot is a solid project with great fundamentals. It is also a high marketcap coin which means that there is less risk involved when investing in a high marketcap coin. After my fundamental analysis and sentimental analysis, I have decided that Dot is a great cryptocurrency to invest in because there is a huge upside to the coin. DOT still has room to climb up when it comes to marketcap and because of that, I have chosen DOT.

Technical Analysis - Price Forecasting Using DOT/USDT pair

I will be predicting the price of DOT using only technical analysis. The technical analysis tool I will be making use of is tradingview which is a great tool for technical analysis. Because I have already done my fundamental analysis and sentimental analysis of polkadot DOT, I will be focusing only on technical analysis in this example. I will be focusing on the support and resistance level of DOT because I think it is a really effective strategy when predicting cryptocurrency prices. I will be doing the technical analysis on DOT/USDT pair on Binance since there is a lot of DOT volume on Binance.

DOT chart on coingecko

The current price of DOT is $28.02, the last 7days price of DOT is $40. The 24hr high was $31.07, the 24hr low was $22.42. The all-time high in the last 6days was $49.35. Looking at the past price data, we can see that DOT went down almost 45% from its all-time high.

Looking at the tradingview chart of DOT/USDT pair, you can see the support and resistance levels of DOT/USDT. The current day chart shows that DOT has wedged a resistance level at about $31 and has gone past the last support level which is showing a downtrend sign. This means that there is a greater chance that DOT price would still decrease further except there is a major turnaround in the market.

Looking at the tradingview chart of DOT/USDT pair, you can see the different highs, lows, higher-highs, higher-lows. The current chart of DOT has shown a higher-low which is a downtrend sign. With this, my prediction for DOT in the next week is between the ranges of $24.5 and $26.00

Based on which Technical study the possible low level and the high level for the next 1 week?

After doing my technical analysis on the DOT/USDT pair, the chart shows the different support and resistance levels and also higher-highs and higher-lows sections. My prediction on the next low of DOT is $24.50 and the next high of DOT could breakout at $30.25

Conclusion

Technical analysis is a really important step when it comes to cryptocurrency price forecasting and for me, the reverse strategy has proven to be a useful strategy when trading cryptocurrencies. Coingecko is without doubt a very useful and beneficial tool for price analysis and cryptocurrency statistical data. It is one of my most used tools whenever I want to analyses any cryptocurrency. Finally, it is important to do careful technical analysis before trading any cryptocurrency so as to make the best trading decision.

Task post for @stream4u