LINK//USD- SELL| S6T2- TEAM TRADING POST FOR TEAM FRONTLINE

jueco (76)Beginner[2,3,4,5,7]in SteemitCryptoAcademy • 2 years ago

My dearest friend, I warmly welcome you to the fourth post of the week 2 trading competition, and as expected, I remain with this inspiring team, team Frontline.

Without wasting much of our time, shall we proceed to the main task of the day.

THE NAME AND INTRODUCTION OF THE PROJECT TOKEN, AND WHICH EXCHANGE CAN IT BE TRADED ON

The name of the token we shall be learning about today is link, and we shall be trading the pair LINKUSD.

Chain link founded in 2017 can be explained to be a blockchain abstract layer which permits smart contract connected universally.
It can also be explained to be a decentralized oracle network which provides the blockchain with offchain data access.

With the help of a Decentralized oracle, chainlink permits a secured interaction between the blockchain and the extra data feeds, hereby making available to smart contract, the needful offchain information, required to be the dominator of the digital agreement.

The chain network is run by a number of node operators, Security auditors, smart contract developers, researchers and an open-source community of data providers.

The network aims at ensuring that equal participation of all users and node is implemented.

Chain link secures it's oracle network through the use of ERC-20 token.
And it is ahead of Ethereum, in the sense that it has already implemented the use of POS consensus mechanism which Ethereum is about to implement.

Link on other hand can be explained to be an ERC-20 token with an extra function of ERC-223, and the more link token an operator has on the network, the higher his power will be.

FOUNDERS OF LINKCHAIN

Link chain was co-founded by Sergey Nazarov who graduated from New York University with a degree in business administration and a focus on administration and philosophy.

He began his career at NYU Stem school of business as a teaching fellow and by 2009, he co-founded a peer-to-peer marketplace where individuals gain authentic local experience.

Chain link provides it's users with the opportunity to become a node operator and earn passively.

Source

As seen above, chainlink can be traded in the following exchanges

Binance
Kucoin
Huobi Global
Coinbase
Kraken
Gate.io
FTX.

Source

The following statistics were gotten from coinmarket cap as at when this post was made.

TOKEN	STATISTICS
Name	Chainlink
Price	$13.97
Rank	#23
Low	$13.97
High	$15.00
Market cap	$6,526,028,452
Fully diluted market cap	$13,943,004,907
Vol/market cap	0.1056
Circulating Supply	467,009,549.52 LINK
Maximum supply	1,000,000,000

WHY ARE YOU OPTIMISTIC ABOUT THIS TOKEN AND HOW LONG DO YOU THINK IT CAN RISE?

I am so optimistic about this token today because of its great project and it's fast growth and development.

I was amazed to find out from my research that the link token is ahead of Ethereum by implementing the POS consensus mechanism and also that the chainlink is among the first network to permit the integration of offchain data into smart contract.

And concerning how long it would rise, I cannot give a precise answer, but I believe it's project and developers will really push it's price upwards.

HOW TO ANALYZE THE TOKEN

Well, as said earlier, I shall be trading on the pair LINKUSD, and below are my analysis.

^{Screenshot from mt5}

I went to my chart on a 1hour time frame, and I watched the chart, then I noticed that the chart was moving downward and broke it's support level.
As I continued watching, I noticed that the price came back to retest it's already broken support level which is now acting as a strong resistance line.

As it hits it's resistance line, the price is expected to be rejected and move in the downward direction.

In order to confirm this signal, I added my stochastic Indicator, and from my stochastic Indicator, I noticed that the price was in an overbought region of 80, thus indicating a bearish trend reversal.

I then moved to a 15minutes time frame for more confirmation.

^{SCREENSHOT FROM MT5}

The 15min time frame gave the same signal, it comprised of lower lows, which is an indication of a downtrend until it broke it support line.
It then went to retest it's support line which is now acting as a strong resistance.
At the point of retest, my stochastic Indicator was indicating an overbought, which is a confirmation signal that the price would reverse downward.

So I entered a sell order market at 14.511 and placed my take profit at 14.24 and my stop loss at 14.747.

And as expected, the price reversed and hit my take profit.

^{Screenshot from mt5}

Below is the market order I placed on my Mt5

^{screenshot from mt5}

YOUR PLAN TO HOLD IT FOR A LONG TIME OR WHEN TO SELL

Well if I were to be a long term investor, I would have held this token for a considerable time, because it's holders in recent years benefitted a lot from holding on to the coin.

But as an intra-day trader, I have no plan to hold the coin for a long time.

DO YOU RECOMMEND ANYONE TO BUY

Due to diversity in reasoning, u will not recommend anyone to buy this coin, because the level of risk I can take is different from that in which my fellow trader can take.

So in order to avoid conflicts, I will advise all to make extensive research and then make investment of their choice, as I am not a financial advisor.