Steemit Crypto Academy | Season 3 - Week 5 || Market Patterns and Blockchain Projects || Homework post for @imagen

samsuccess (64)in SteemitCryptoAcademy • 3 years ago

I welcome everyone to Season 3, week 5 in the Crypto Academy and thank you @imagen for the Lectures.

Introduction

Blockchain has proven to be a secure system of storage, meaning it cannot be hacked and transactions cannot be altered. A digital ledger which is able to keep track of data, informations and transactions. This advantage is what is making project get built and developed on the blockchain technology. There are many use case for the blockchain of which Cryptocurrency happens to be one of the profound of the blockchain technology.

Variety of blockchain projects are born on a day to day basis and in its real sense is supposed to have a use case or at most solve a project facing the blockchain and in a long run the cryptocurrency inview. It is in this view that we are requested to do a proper scrutiny before investing into any project. Market analysis are usually to know the trend in price of a project as to also determine entry and exist points respectively. For the purpose of the task questions we exploring the Cardano (ADA).

We would be employing the Cardano in this section. Before investing it is only proper and as we have been taught to do a proper check on a project, check its white paper, what the project seeks to solve, future of such projects and finally who are those developing this project.

Cardano (ADA)

Cardona is a cryptocurrency that has been competing with major cryptocurrencies like Bitcoin, Etherum, etc and is among the top 10 cryptocurrency by market capitalization. It was launched in 2017 and aims to bring more development into the cryptocurrency ecosystem but building and solving flaws realised with Bitcoin, Etherum and it likes.

Cardano is an open sourced decentralized blockchain making use of the Proof of Stake Concencus solving problems of sustainability and scalability on the Proof of Work Concensus, for this reason it aim to be better and more advance than Etherum blockchain even though Etherum is currently planning a migration from proof of work to Proof of stake.

What it solves

It aims to be a decentralized Dapps which will and allowing smart contract to be built on it. Currently, it is about to launch a testnet of its Dapps which will allow users to explore smart contracts on its network. Cardano is poised with keen and well trained developers. Charles Hoskinson who happens to be a Co-Founder of the Etherum blockchain is the founding father of the Ada Cardona blockchain, and aims at making it bette than the Etherum blockchain.

According g to the Whitepaper, Cardano is built I five phases which are also seen to be its road map;

The foundation stage also referred to as Byron era
Next stage is decentralization stage also called Shelley
Smart Contracts also Goguen
Scaling also Basho
Governance also Voltaire

Cardano is a prominent project built in stages, a had robust uses cases. Holders of ADA can also participate in staking activities which enable you to earn more ADA coin and hence making more money. However I choosed this currency due to the fact that it's heavily backed by 3 companies. The Cardano products object has been a continuous one, currently a smart contract platform is about to be lunched which will further give the token an edge over others.

Ada will ensure transfer of value among investors and many sections ranging from transportation, etc.
Ada focuses on commerce as well s businesses, this happen to be a key aspect of every growing economy as they seek to empower and encourage business to grow. I see Cardano playing an important contribution it this regards.

Market cap and token Ranking

According to Coin market cap and at the time of this post, ADA the native coin of the Cardano network is currently on a market cap of $40,852,436,546 USD and is currently ranking as no. #5 just before BNB coin.

My Investment in ADA coin

I have decided to invest about 13 USD on the ADA coin which i believe have a bright feature just like Etherum.

I first login into my binance exchange
Go the wallet section
I will then find my spot wallet o check if i have available USDT to complete my transaction
Click on market and search for Ada
Select the preferred pair

Place select price and quantity to purchase
Place your order

Explain in your own words what the "Evening Star" pattern consists of. What is its hit rate

When we talk about Evening Star in technical analysis of stock, it simply means a reversal in trend towards the downside. It consists of of 3 candles namely;

A white candle stick
A small full bodied candles
Finally a red candle.

image source

These candles forms with a three day period; the first day consists of a large with candle which depicts a rise in price which further indicates a large buy, the second day a short full bodied candle which shows a little further rise in price, also indicates a further buy pressure but not like the previous day and the third day gives us a large red candle which is bearish, indicates massive sell-off and price opens lower than the period's days' and closers at the near middle of the first day's price.

image source

Investors sees this analysis as a bearish pattern as price declines on the chart. However, it has also been considered to be a very reliable indicator in the cryptocurrency market and the opposite of the morning star which is a bullish indicator.

Explain in your own words what the pattern "Abandoned Baby" consists of. What is the percentage correct?

The abandoned baby candle stick has been described as a very rare reversal pattern. It shows bearish at times and shows bullish another times, the bear is usually called the CUB and the bull is called the calf respectively. Furthermore, just like the evening star it also indicates a reversal pattern in trend which forms a 3 bar pattern. It can be detected on the graph by spotting a tiny doji which is usually called the baby and the candles surrounding it is either higher or lower. Though we say it looks more like the Evening Star, however the major difference between this two is that real babies and shadows cannot overlap from the first to the second and the second to the third when seen from the chat view.

Investors see it as a massive change of game from bullish to bearish or the other way around. In real sense, there are two types of Abandoned Baby candle stick, Bullish and Bearish respectively and they both have their description of what the market is saying.

Task 4: Perform analysis for 3 and 7 recent calendar days for Bitcoin Do you identify any patterns? Show screenshots

3 days BTC analysis

The chart above can show possible analysis thus:

We can see a bearish engulfment pattern in which the bullish candle is completely wiped out by the bearish candle
An irresistible downward trend followed by some price reversals along the way both upwards and downwards respectively
Three white soldiers are being spotted which shows a strong price reversal upwards, making a strong upward movement which means more buying pressure
Finally followed by a sharp price reversal

7 day BTC analysis

Looking closely at the graph above, we could say;

At the beginning there is a bearish engulfing pattern which looks like a rail road track pattern though the bearish candle slightly wipes off the bullish candle
An evening star was spotted which means which means a reversal of a period trend
It was followed by an upward trend means more purchasing than selling pressure.

Conclusion

This class has been very educating and am grateful to the professor. Technical analysis is paramount when we talk about cyptocurrency trading, knowing various trends are vital for future price projections as well entry and exist point in future trading.

However, it is of keen importance that we investigate a project before entering into it in other to safe guard our assets. all these have been captured in this lectures and am enlightened.

THANK YOU

#imagen-s3week5 #cryptoacademy #blockchain #analysis #ada #btc