[XRPUSDT | Sell]Crypto Academy Trading Competition - S6T3 | Homework Post For Prof @pelon53
The name of the token is the XRP. It is a common cryptocurrency used for products that was developed by the Ripple labs. Here, the products can be used to pay settlements, exchange assets, with remittance systems working more like that of SWIFT, which is a service for international money and also security transfers used by many banks and financial powerhouses. It should also be noted that the XRP is pre-mined and is using a less complicated mining method if we are to compare it to bitcoin. Its main purpose is serving as a bridge of exchange between currencies or networks.
In 2011, three engineers namely David Schwartz, Jed McCaleb and Arthur Britto started the development of the XRP ledger due to their fascination for bitcoin. Their purpose was to make a better version of bitcoin improve on its lags, and creating a digital asset that was much more sustainable and was built mainly for payments. The XRP ledger first launched in June 2012 and the team was shortly joined by Chris Larsen. The company’s initial name was NewCoin, then changed to OpenCoin to now Ripple. The premined cryptocurrency uses the symbol XRP, however, Ripple is the name that the company and network uses. Ripple works on an open source and a peer-to-peer decentralized platform that enables a seamless money transfer in any form; can be dollars or even in bitcoins.
XRP can also be purchased on different exchanges like Bitstamp, Kraken, Huobi Global, Binance, etc.
Since it does not use a blockchain, it doesn’t depend on a proof-of-work algorithm like bitcoin or ethereum, as such, it does not need the energy and computing powers others need, at the same time, gives faster transaction speed. This is a theory that will increase number of users in the long run thus a rise in price. Unlike many other cryptocurrencies that market themselves on decentralization, XRP does not partake in this competition but rather associates itself with several other banks, investment companies and many other organizations worldwide to give itself a plethora of users. Even though it currently has a SEC (Securities and Exchange Commission) lawsuit, its rate is likely to skyrocket if it is settled.
Having being granted the opportunity to partake in the crypto academy classes, the notion of the Fibonacci retracement tool was made clear to me especially in trending markets. As such, I was able to wait out the market for me to see a downtrend before executing an order. On this timeframe (5mins), it can be observed that the 38.2% level acts as a resistance with prices breaking, retesting and closing below it.
After drawing a Fibonacci line linking the highest point on my chart to the lowest point, an array of levels given by the Fibonacci tool was seen. Here, areas where prices bounced off are seen. For example, at the 61.8% level, the prices took a whole lot of time to consolidate under it before finally breaking past it down below. Without any FOMO, I decided to wait for another level that will act as a potential support and resistance with it acting so on at least 03 occasions, which is what is experienced at the 38.2% level.
Upon sight, we also notice the 23.6% level acts as a support in a few occasions, even though it is temporally broken. With this knowledge, we anticipate the price to reach the 38.2% level, bounce off and go towards the 23.6% support level. The price indeed did bounce off the 38.2% resistance level and a sell order was opened in anticipation for it to reach the 23.6% resistance level.
Using proper management, a stop loss was set at 0.8075 and a take profit at 0.8015 with a 15x leverage with a profit of $0.2 and the results are shown below;
I currently hodl this coin as I see so much potential in it. In as much as it is not decentralized as many other assets will want to portray themselves as, the XRP is relatively cheaper and faster in performing transactions as compared to the native bitcoin. This will serve as a market point in the future when many other traders notice it at which point the token will receive an economic boost.
The current price of the XRP is $0.84 but it has an ATM of $3.4.
The only other current important information on which most of the success of the XRP token works is its issues it has with the SEC. In December 2020, the SEC charged the Ripple and two of its executives with raising up more than $1.3 billion via an unregistered giving of digital asset securities. If this case is finally successfully settled, as was the case, the XRP will continue to surge upward. But if for some reason, they are found guilty under the federal securities laws, it is highly probable they will experience a storm which will be secondary to some as Coinbase had earlier delisted them.
As is always the case, DYOR is a golden rule in the market. Eventhough I stand by the fact that buying this token and encourage people to HODL, it is not financial motivation but from my own perspective. Currently, XRP is one of the fastest and also most scalable digital asset, that enables real-time global payments any place in the world. Using XRP, many banks can source the liquidity on demand in real time without the need to pre-fund accounts. Also, Payment Providers use the XRP to expand and explore reach into new markets, with significant lower foreign exchange costs and as well do provide faster payment settlements.
I believe in the hidden potential in this project and see an exponential rise in the future. Amidst its current predicament, I believe it will weather the storm as even gold passes through fire before it is made beautiful for the eye, and will continue in its aid to helping transactions at lower costs and faster speeds throughout the world.
CC:
@pelon53