MATIC/USDT FUTURES TRADE ]-Steemit Crypto Academy | S6W1 | Team Trading Contest Post for Team-Frontline.
Glad to be part of team frontline. This is my fourth entry for the week one of trading contest. Today I have taken MATIC/USDT futures trade .
Introduction to Token/Project
Having taken future trade in MATIC, I have already covered part of fundamental analysts in spot trade that I performed few days ago. Fortunately, I have closed that trade as take profit was hit. For this task, let me briefly discuss Polygon or MATIC network and token.
Polygon is the new name for the earlier called MATIC network. Polygon network came into being to tackle some shortcomings of ETHEREUM blockchain like higher transaction fee, lower transaction speed and poor interaction with other blockchains. Polygon network follows proof of stake consensus algorithm and the network makes use of multiple blockchains that run simultaneously in parallel and therefore increase the transaction throughput of the polygon network.
MATIC being the native token of polygon network confer governance rights onto the MATIC stakers and is also used as a payment option on the network to lower the transaction fee. So in these contexts , we can say that polygon network is able to deliver certain services better than ethereum network.
As for coinmarketcap stastics of MATIC is concerned, the live Polygon price today is $1.48 USD with a 24-hour trading volume of $1,94,70,29,094 USD. The current CoinMarketCap ranking is #16, with a live market cap of $11,06,17,13,868 USD. It has a circulating supply of 7,53,78,50,960 MATIC coins and a max. supply of 10,00,00,00,000 MATIC coins.
Technical Analysis
MATIC/USDT ON 4H TIME FRAME SHOWING DOWNTREND
As I was planning a future intraday trade, so I begin by analysing the overall Trend of MATIC/USDT on 4h timeframe. As you can see in the chart above that, thereis a clear downtrend. I have also drawn a critical support level at MATIC price of 1.440USDT. Then I switched on to 1 hour time frame.
MATIC/USDT ON 1H TIME FRAME SHOWING SIGNS OF REVERSAL
As seen in the chart above, we can clearly see that price reversal has taken place as reflected by long green candles of increasing momentum. Moreover the last 1h candle that we can see has a long lover wick reflecting the lower price rejection. So I flipped onto 15 minutes chart to look for proper trading levels.
MATIC/USDT ON 15min TIME FRAME SHOWING SYMMETRICAL TRAINGLE PATTERN
MATIC/USDT ON 15min TIME FRAME SHOWING Different Levels
On 15 minutes chart above, I could spot a symmetrical triangle pattern , so I was expecting it to break the upper side of the symmetrical Triangle and then I could have taken buy position .
On the second chart of 15 minutes timeframe above, you can see that price broke lower line of the triangle but couldn't sustain below. So, I couldn't enter sell trade which could have been otherwise possible, had the price been able to sustain itself below the lower line of the symmetrical Triangle. Price immediately returned to the Zone. Then I draw a rectangle to contain the consolidating movement of the price
and wait for price to break the upper level of the rectangle for taking the buy position. As price broke above the uppern line of rectangle with strong bullish momentum and a good trading volume as seen on the volume indicator, I placed the buy entry. I set my stop loss below the lower margin of the rectangle at MATIC price of 1.406 USDT and set different take profit levels. My first level is at 1.513 USDT, second is at 1.539 USDT and third is at 1.578USDT.
MATIC/USDT ON 15min TIME FRAME SHOWING TP1 Achieved.
As seen in the chart above, my first TP level has been almost hit and I am in seven percent profit already as seen in the BINANCE transaction history below.
Optimism, suggestions, holding time.
MATIC is at Rank 16 as for coinmarketcap data is concerned. I am optimistic about bullish momentum of the MATIC as for my technical analysis concerned. However, I am not going to hold this token long for several reasons like main reason being shortage of funds and second reason being the volatility of the market. For those who plain to invest in Crypto for long time, I think MATIC is a good token to invest and we're getting it on a discounted price these days due to dip, so we should not miss this opportunity. It is the high time to add MATIC to the portfolio for long term swing traders. For short term swing and intraday traders, I would suggest to perform a proper technical analysis and only than take their position.
Conclusion
I have taken MATIC futures call today based on my technical analysis. My portfolio is in green and I am expecting it to hit all my levels within few hours. However, the volatility of the crypto market bounds me to abide by proper risk management and set SL & TP levels as indicated.