REPOST — ADA/USDT Buy | S6W1 | Team Trading Contest Post for Reminane

It's another week in the Crypto Academy. This is the week one of the trading competition. It's an initiative organized by the Admins of the Academy to allow us display our skills and test what we have learnt so far in the academy. I will be joining one of teams as requested. For this we, I will like to join the team of "reminane". So, in this post, I will be giving the full details of the trade I took today, Monday 21/02/2022. So, follow me closely as I will be analysing the asset.

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The name and introduction of the project token, and which exchange it can be traded on, project/team/technical background

Firstly, before we look into the analysis, we will look at the project background. That's the team behind the coin I am trading, the background and the growth so far etc. The name of the token is ADA (Cardano). So I will be buying the pair ADA/USDT for the first trade of the week in this trading competition.

ADA is the native token of Cardano blockchain, the blockchain which was founded in the year 2015 by Charles Hoskinson , a co-founder of Ethereum blockchain. The Cardano Foundation based in Zug, Switzerland oversaw the development of the project. The project was regarded as the large cryptocurrency which uses the proof of stake, an alternative consensus mechanism to old consensus mechanism proof of work.

Although the development of the project commenced in 2015 but it was fully launched in 2017 by Charles. Shortly after the launch of the platform, Charles left the Ethereum community as a result of argument between himself and of the co-founders of Ethereum. He later co-founded another blockchain called IOHK blockchain. This project was also involved in the development of Cardano and Cardano foundation.

Cardano is an open source, decentralized blockchain project and was birthed as a result of an idea to solve blockchain Trilemma in old blockchains like bitcoin and Ethereum. Thus, a consensus mechanism different from proof of work was used. Cardano uses proof of stake consensus protocol known as Ouroboros so that interoperability and scalability issues found in these old blockchains could be solved.

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According to Coinmarketcap, Cardano (ADA) is trading at $0.9514 and this was after the technical analysis has been done and trade has been taken. We will see later the price at which my buy order was taken.
ADA has a circulating supply of 33.63B ADA;
Market capitalization of $31, 993, 485, 374;
Volume of $1, 721, 402, 280;
Maximum supply of 45, 000, 000, 000
**Total supply of 34, 124, 382, 217.
See the screenshot below showing these data on Coinmarketcap platform.

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_{Screenshot from Coinmarketcap Source}

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Exchange it can be traded on

ADA can be traded on many exchanges. Some of the exchanges on which Are can be traded on are , binance, coinbase exchange, huobi global, gate.io, Kucoin, etc. I have attached a screenshot below showing some of these exchanges where you can trade ADA.

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_{Screenshot from Coinmarketcap Source}

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Why are you bullish on this token today and how long do you think it can rise

Today I'm going bullish on this token because of the analysis done on the token and some information I saw on it. According to my analysis , ADA met a major support which is capable or reversing the price to the upside.

ADA price at the time of performing the analysis at that support level is $0.926. The price could rise as high as $0.988 which is a resistance level. Let's dig more in the technical analysis of the token.

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Technical Analysis of the Token, ADA

Now, in this part of the task, I am going to be doing technical analysis on the crypto pair of ADAUSDT and the platform I will be using is trading view platform. This analysis will be based on the knowledge I have gained from Professors in the Steemit Crypto Academy.

I will be analysing the pair as an intraday traders and as such, I will be doing analysis that will take weeks before we can see the result, rather an analysis that we can see the results with in 24 hours. As we know that an intraday traders don't keep position open for a long time.

Now, opening the chart of ADAUSDT, the first thing to do is to analyze the trend, where the price of an asset is likely going to and analyze how we can take advantage of it in the market. So, i opened the chart to H4 timeframe to have at least the general view of what the asset is doing.

Firstly, let me let you know that the strategy I will be using is what i have learnt from Professor s in the past. I remember Professor @reminiscence01 taught us about RSI divergence and support and resistance and multi timeframe analysis. So I will put this into practice in this task.

I added RSI to the chart. Then I switched the chart to H4 timeframe. On the timeframe, ADA I found at a key support level and of course we know that support level has the capability to support the price because it is an area where buyers gather to accumulate the asset. Having gotten that fact, I still saw that RSI was oversold. Meaning that the sellers may be out of the market very soon. Let's see the screenshot below.

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_{Screenshot from Trading View Source}

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Switching to H1 timeframe to know what's happening there. I found out that a bullish divergence has already occurred on H1 timeframe. Bullish divergence is a reversal pattern in the market. Bullish divergence forms when the price of an asset makes lower lows and RSI makes higher lows. It signifies that the sellers are getting exhausted in the market and the price will soon rise to the upside. See the screenshot below.

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_{Screenshot from Trading View Source}

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I have found out that the price has the probability of reversing from that point. I have confirmed from H4 timeframe and H1 timeframe. I saw that on H4, the price is at the a key support level and that RSI is oversold. Then on H1, a bullish divergence occurred. Now, to enter the trade, buy order, I will need to look at lower timeframe. I switched to M15 and 5 timeframe. Then on 1 minutes timeframe, I found a candlestick pattern which can help me enter the trade. On 1minutes timeframe, morning star candlestick pattern formed. Morning star is a bullish reversal pattern that's usually formed at the bottom of a bearish trend. It's capable of reversing the price especially if it's formed at a support zone. And fortunately, this formed at a support zone. In addition to that, a bullish divergence also formed on this timeframe. See the screenshot below.

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_{Screenshot from Trading View Source}

As soon as I saw that, I entered an instant buy order using spot trading on binance app. The entry price is $0.926. I will be taken profit once the price reaches $0.988 while stop loss will be at $0.922.
For spot trading, if the price manages to get to my take Profi price, that means I am going to sell back my ADA and gain the profit and if the price hits the stop loss, I will lose some amount. See the screenshot below.

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_{Screenshot from Trading View Source}

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In the screenshot below, you will see the order of ADAUSDT being placed on binance app. The order was bought at the market price, the current price of an asset. I bought ADA worth of $10 at the price of $0.926.

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_{Screenshot from My Binace App}

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The screenshot below shows the order details of ADAUSDT bought. I now have 11.2ADA in my wallet. The day and some other details are shown in the screenshot.

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_{Screenshot from my Binance App}

Then, I checked the trade three hours later, it's going on nicely. It's already halfway to my take profit. See the screenshot below.

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_{Screenshot from Trading View Source}

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Your plan to keep it for a long time or when to sell it?

The type of trading i did is an intraday. So once the price gets to the take profit, I intend to sell the coin and take my profit and probably invest or trade any other coin.

So in essence, I don't plan holding the asset for long. It's purchased so I can make take the advantage of price that's predicted to rise for a short time and once the price rises to the area or point, I will exit the market by selling the asset, ADA.

Do you recommend everyone to buy? Give reasons for recommending or not recommending.

Yes! At the point of performing the analysis, I would recommend people buy the asset based on my analysis.

Having seen that the price is likely to reverse based on the analysis done on trading view, then, I would recommend. As it's seen in the analysis done above, I have many reasons to eat the buy trade, hence, I am very sure that the price will reverse from that point.

Therefore my analysis will be why i will recommend people to buy the asset, ADA. But it's also important that I tell anyone who wants to buy to manage his or her risk because no prediction is 100% certain and that cryptocurrency is very volatile. So, risk management is very important.

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Conclusion.

In this task, I put my knowledge to practice by trading a buy order on the chart of ADAUSDT. The spot trading on binance was utilised and we can see that the trade is already going nicely. I have used the strategy of price action, support and resistance and RSI divergence to take the trade.

I'm extremely glad of the initiative as we will have time to practice more and put to action what we have learnt so far in the Steemit Crypto Academy. Thanks to the Admins for this great initiative. And thanks to Professors @reminiscence01 and @nane15 who is the lease of the team reminane. I will surely update the results of all my trades on saturday to the Google form as requested while the individual trade result will still be shown on each post.