Crypto Academy Week 14 | Homework Post for @stream4u | Technical: Reverse Strategy | Crypto Prices & Market Source: Review Of COINGECKO
Intoduction
It's a fresh new week at the academy and I am glad to resume learning from the seasoned professors at the academy. This week, I've attended the lecture presented by professor @stream4u which talked extensively on Reverse Strategy and Review of Coingecko, and I will attend to the tasks given with this article.
Technical Details on Reverse Strategy
The first thing to note when you hear the phrase Reverse Strategy is that it's a context that wants to talk about a trend and how it was reversed in the long run and as such, Reverse Strategy is a strategy employed in the technical analysis of cryptocurrency to detect an extremely bullish or bearish of a crypto market before making an investment decision to properly take advantage of the prolonged bullish or bearish trend.
How does Reverse Strategy works?
When a crypto market is noticed to be in a state of prolonged bullish or bearish, it is important that the trader should be patience enough to be certain of the state and possible reversal. Going further, when a market goes extremely bearish, it's an indication that a buy position would be opened sooner and as most trader would, they would jump in to make a purchase but in contrary, the price of the particular asset might go more bearish which delays a trader's investment plan.
This is where the Reverse strategy comes in when traders uses the technical chart to plan their investment. With Reverse Strategy, take for instance, when a market goes bullish or bearish the analyst should give a space of complete 24 hours (a day) which could see the price behaviour of an asset extremely up to +20% or -20% or even more on the chart pattern and in the process note the following; closing price, high points, low points and the opening price at the end of the 24 hours.
Now for a prolonged bearish market, if the opening price at the end of the 24 hours (a day) is very close to the close price, then it's a good indication to position oneself for a buy order and consider the next high point as the take profit level and next low point to the purchase price for stop loss. Take for instance, if the trend reversal goes extremely above the previous high point, there could be an opening for selling target which could be taken from the two previous high point (a high point reached a day before the previous day).
Showing Reverse Strategy on TRX/USDT Pair
I explored the TRX/USDT pair on my TradingView chart pattern on PC to identify the reversal noting the bullish and bearish reversals. See screenshot below.
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TRX/USDT Pair- Bullish and Bearish Reversals
Review CoinGecko
In this part of the task, I will be considering showing what CoinGecko means, how it's important for users to know more about the general cryptocurrency market and the features of interest.
What is CoinGecko?
Coingecko.com/ is a platform that was created to keep the track of different digital currencies and get various informations about the cryptocurrencies. It was an invention of TM Lee and Bobby Ong that came into limelight in the year 2014 and based in Singapore. Crypto users gets detailed information about cryptocurrencies on Coingecko.com/ which allows them to analyse the best ones for different purposes. There are so many data supplied by Coingecko.com/ like; the exchanges available, crypto market capitalization, volume of different cryptocurrencies, different analysis and much more.
Coingecko landing page
The screenshot above shows that the number of coins at the moment as calculated by Coingecko is 7326 and the number of exchanges is 471.
How COINGECKO Can Be Helpful for you in a Crypto Market?
Coingecko is quite helpful in several ways and some of the points would be listed below.
Performance Evaluation: Coingecko.com/ gives informations about different cryptocurrencies thereby showing their performance and this would help a trader to make a good decision as to which asset is doing well for investment at the moment or the ones having a wonderful future ahead.
Prices and Ranking of Cryptocurrencies: The current price of different cryptocurrencies are revealed on Coingecko.com/ so as well the ranking by market capitalization which helps one to make a few fundamental research on how well a crypto performing in the market.
Volume and Historical Chart: Volumes of each cryptocurrency in the market are easily seen on CoinGecko and this historical charts over time are shown such that it helps users to see the market behaviour of an asset over time.
Explore COINGECKO features with information
Categories
From the landing page of coingecko.com/, one can select categories and the purpose of categories is to sort cryptocurrencies type. Some of the categories available on the list are; Exchange-based tokens, Decentralized Finance, Centralized Exchange token, Binance smart chain ecosystem, Automated Market Maker and so on. Each category of the tokens have top coins in each section with market capitalization, 24h volume, the ranking by market capitalization and the price behaviour for the last 7 days. See the screenshots below.
Select categories
Crypto categories
As seen in the category, Exchange based tokens has a total of $153,645,271,495 market capitalization and $21,182,292,465 24h volume.
Exchanges
Another feature to be considered is the Exchanges feature on CoinGecko, selecting Exchanges from the menu brings more option for a user to select like Spot, DEX, Derivatives. Spot has a record of exchanges that offers spot services, DEX gives a list of decentralized exchanges and Derivatives gives a list of exchanges that offers contract trading. In this case, I am selecting Spot and we have Binance exchange on the first number and the Trust score is also attached to each exchanges and other informations like market capitalization, volume and the likes. See some screenshots below.
Exchanges <---> Spot
Spot- Exchange and Trust Score
Recently Added Coins
This is another great feature on CoinGecko where a user can easily check on the recently added coins and the screenshot below revealed the coins that were recently added coins with some other informations like the volume, market capitalization and so on.
Recently Added Coins
Developer
Developer is another feature of CoinGecko that shows the recent contributions made by developers in quest to make notable amendments to the project and make it better with some activities that was recently taken place. The developer feature was accessed through the Top 100 Trading Volume option on CoinGecko platform.
Developer feature
Cryptocurrency price by Market Cap
Cryptocurrencies prices can be sorted based on market capitalization which shows the rank of each concurrency, their prices, market capitalization, trading volume and so on.
Market Cap ranking
Currency Preferences
Currency of choice can can be selected by selecting the drop-down to choose a currency of choice and easily read each crypto prices in the new currency chosen. The steps below.
Currency change
Currency- Nigerian Naira
Currency change effected
Weekly Price Forcast For Crypto TRX/USDT Pair
For this particular study, I am using the TRX/USDT pair and the reason I've chosen TRX because this asset has enjoyed a wonderful uptrend in the recent time. Over the last few weeks before the downtrend, TRX has enjoyed a great market price behavior and there are a few things I love about TRX which would be discussed below.
What to know about TRX?
Tron (TRX) is the native token of the Tron network which came into limelight in the year 2017 founded by Justin Sun. Tron blockchain has changed so many things in the blockchain technology bringing about free transactions on the blockchain and all tokens on the Tron blockchain are considered TRC20 tokens. At the moment of compiling this article, the price of 1 TRX is equivalent to 0.1132 USD and TRX is on the number 22 by market capitalization with the total market cap of $8,111,298,890.35 and the circulating supply is 71,659,657,369 TRX, these are the informations gotten from coinmarketcap.
Why I have chosen TRX?
As I highlighted earlier, TRX is the native token of the Tron blockchain which makes it a TRC20 token and I've picked interest in this token for a long time ago because of the innovations the Tron network brought to the Crypto ecosystem. Some of the features that interest me about the Tron blockchain are listed below;
- Compatibility with smart contracts.
- Transaction speed of up to 2000 transcations processed / second.
- Low transaction fee on the Tron network.
- A free digital platform that enables users to share digital contents free with no attached charges. And more.
Technical Analysis- TRX/USDT Pair
I have chosen the technical analysis to check on the price behaviour of TRX/USDT pair and predict it price (high and low point) in the coming one week. In this analysis, I will be checking on supports and resistance in the previous days/weeks which has forced a trend reversal. This strategy I am using today can involve the new topic I've learnt today to see extreme bullish/bearish price behaviour of the asset to see points where there was reversal trends and draw out my support/resistance to predict the price of TRX/USDT in the next one week.
Checking on the price behaviour of TRX over time, at the price 0.13919 USDT, where a resistance eventually turned to be a support and this makes a good point to set one's point of taking profit. So buying the asset below that price at a good support makes 0.13919 a good point at the take profit level.
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Resistance to Support- 0.13919 USDT
TRX/USDT asset is at the moment on downtrend and there were two supports caught earlier at the low level of 0.09998 USDT which gives a certainty that if there were no trend reversal before that level, there would be a reversal trend at the low point 0.09998 USDT and that opens a good position for buy and setting the next high 0.13919 USDT.
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Supports- 0.09998 USDT and Profit level one- 0.13919 USDT
Now, in the next one week there could be a trend reversal at the support 0.09998 USDT at worst to make a good buy position and set the next high which is 0.13919 USDT as the first profit level with a probability of another price breakout which could reach 0.16999 USDT
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Breakout up to 0.16999 USDT
Output of my Technical Analysis on TRX/USDT pair
From my study, I have the following data to show the estimates from the chart pattern of the TRX/USDT pair. And the technical analysis was based on the price history of the asset noting the supports, resistances and reversal trends over time to make a price forecast for the asset in the next one week.
- In the next one week, the next low is 0.09998 USDT.
- The next high is 0.13919 USDT.
- Also, there could be breakout at 0.13919 USDT and attain 0.16999 USDT.
In conclusion, the reversal strategy is a great technique that is effective for a trader to wisely take advantage of an extremely bullish/bearish market without panicking into/exit a trade. And Coingecko.com/ is a platform that provides all needed information about digital currencies and helps users to keep track of different crypto assets to making a profitable investment decisions or for purpose of getting closer to the crypto world. Thanks to professor @stream4u for this great lecture. Thank you all.
Cc: @stream4u
Written by;
@fredquantum
Hi @fredquantum
Thank you for joining The Steemit Crypto Academy Courses and participated in the Homework Task.
Your Homework Task verification has been done by @Stream4u, hope you have enjoyed and learned something new.
Thank You.
@stream4u
Crypto Professors : Steemit Crypto Academy
#affable
Thanks for the review dear professor @stream4u. It's my pleasure learning from you and I anticipate the next one to even do better. Thank you, sir.
Yes TRX network is very fast and kess Trnsaction fee.
But still it not performed well. Hope soon it reach its ATH.
Nice presentation from you. Take care.
#affable #india
You are right sir, TRX is not doing great at the moment but there is that it rises in a few days time. Thanks for visiting my blog today.
Hope gor that. Eagerly waiting for TRX and Steem.
#affable #india