DOGE/USDT - Steemit Crypto Academy | S6W1 | Team Trading Competition Post for fredquantum-kouba01 Traders Team
Hello everybody.
Welcome to this post. Hopefully, all of you will be good and happy and enjoying good health with the grace and blessings of Almighty Allah. As we know that there is a new initiative in the Crypto Academy Season 6 that is Crypto Trading Competitions. Thanks to the Steemit Team for providing us with such an amazing opportunity to utilize the knowledge that we gained from the academy so far in the real trades.
I am very much happy to join the fredquantum-kouba01 Traders Team that is led by our beloved professors @kouba01 and @fredquantum. So, let's move on towards the trading post.
Today, I am going to open a buy trade in the DOGE/USDT pair. Let's discuss the reason for selecting this pair and this trade in detail.
Coin and Exchange Name
I have selected the DOGE/USDT pair for this trade. I will open a position by technical analysis in Spot Trading. I am going to make this trade on the Binance Exchange.
I think DOGE/USDT pair is a very good pair for me to open a trade. Dogecoin is a strong coin and it is also in the top 20 coins at this time. Although its value is low, its market capitalization is so impressive. Moreover, it also has provided good profits to many traders that used to trade this pair. I have also made many trades in this pair and have secured good profits.
I have selected the Binance exchange because I personally like it very much. It is quite simple to use and also it is a very safe and secure exchange for trading cryptocurrencies. I have also used a number of other exchanges like Poloniex, Huobi Global, etc. But I liked the features of the Binance exchange very much and I am familiar with most of the features of the Binance exchange.
Binance Exchange is the most popular centralized exchange of the time. Its popularity is due to its number of unique and useful features. It allows the users to trade almost all of the good crypto pairs. The P2P trading and the Margin trading of this exchange are also impressive. It allows the users to set the leverage of the futures trades up to 125x which is really impressive. There are also many other unique features of this exchange that made this exchange listed on top in my book of trading.
Fundamental Analysis of Dogecoin
- Introduction and History:
Dogecoin (DOGE) is a peer-to-peer and open-source Altcoin cryptocurrency that was introduced on 6 December 2013 by two crypto experts named, Sir. Jackson Palmer and Sir. Billy Markus. It was actually introduced initially as a meme coin featuring a Shiba Inu Dog image on the label of the coin. Shiba Inu is actually a species of dog in Japan.
Image Taken From
Dogecoin is the native currency of the Dogechain blockchain. It is based on the same Proof-of-Work consensus algorithm as Litecoin that makes the blockchain secure and decentralized. Dogecoin had been one of the best cryptocurrencies at the time. Although, the value of Dogecoin is low its use cases are wide as it is used as tipping currency in social media like Twitter and Reddit. You can see the official logo of Dogecoin in the image.
- CoinMarketCap of DOGE:
On exploring the CoinMarketCap of the Dogecoin, I have got a number of details about the current status of Dogecoin. Let's have a look at the below screenshot.
The information that is obtained from the above screenshot can also be presented in the form of a table, as follow.
| Coin Name | Dogecoin |
|---|---|
| Nick Name | DOGE |
| Rank | 12 |
| Current Price | $0.135 |
| Market Cap | $17,912,423,667 |
| Fully Diluted Market Cap | $17,953,759,376 |
| Market Volume | $560,456,915 |
| Volume / Market Cap | 0.02992 |
| Circulating Supply | 132.67B DOGE |
| Total Supply | 132,670,764,300 |
From the above data, we can conclude that Dogecoin is one of the most popular cryptocurrencies so far.
- Historical Prices:
From the above screenshot, you can see that the All-Time High of the DOGE coin is $0.7376 (8 May 2021) and the All-Time Low (7 May 2015) of the DOGE coin is $0.00008547.
- Available Markets:
Dogecoin can be traded and exchanged in almost all of the good crypto exchanges. Some of them are listed in the below image.
Analysis of the DOGE/USDT pair
There are basically three ways to analyze the market of the assets that are Fundamental Analysis, Sentimental Analysis, and Technical Analysis. Fundamental Analysis deals with the prediction of the market move on the basis of fundamental or financial events. Sentimental Analysis deals with the study of behavior and minds of the traders to predict the next flow of the market. But in cryptocurrency trading, mostly the traders opt to do the Technical Analysis.
Technical Analysis actually deals with the prediction of the upcoming price of the assets by applying different technical analysis tools like indicators, price movements, volume, resistance and support levels, etc. on the price charts. So, I am going to do the technical analysis of the DOGE/USDT chart by applying different technical analysis tools that I have learned from the Crypto Academy lecture so far.
Actually, I have used three different technical indicators to done by technical analysis and made a profitable trade. These three indicators are as follows.
- Relative Strength Index (RSI):
RSI is a technical indicator that is used to determine the Oversold and Overbought positions in the market. There are actually 1 t0 ranges of RSI indicator. When the RSI line is below the 30 range, it is an Oversold condition and when the RSI line is above the 70 range, it can be considered as an Overbought region. The price tends to move upward after the Oversold and tends to move downward after the Overbought region.
- Parabolic SAR:
Parabolic SAR is also one of the most simple technical indicators. It actually consists of a line that is composed of Dots. When the dots are above the price action, it can be considered as a Bearish signal. And, when the dots are below the price action, it can be considered as a Bullish signal.
- Moving Average (MA):
MA is also another important indicator that I have used in my analysis. It actually consists of a line that gives the signals of trend reversals. When the MA line is below the price action, it is a Bullish signal, and when the MA line is above the price action, is a Bearish signal.
Let's have a look at a chart of DOGE/USDT on which the above-mentioned indicators are applied. So, have a look at the below image.
As you can see in the above image, I have applied three different technical indicators on the chart of DOGE/USDT.
First of all, I opened the chart of DOGE/USDT and set the timeframe to 1 Hour. Then, I drew the Support and Resistance levels on the chart, as you can see in the above screenshot. I applied the RSI, MA, and SAR indicators on the chart and observed that a Bullish trend is coming soon. As:
The line of the MA indicator just made a breakout and started moving below the price action which is a signal of a bullish trend.
Secondly, the dotted line of the Parabolic SAR indicator is also moving below the price action is also an indicator of a Bullish trend.
Thirdly, the line of the RSI indicator had just made an Oversold region, and then it was just moving upward and near the mid-line. This is also an indication of the Bullish trend.
You can see in the above screenshot that I have mentioned the entry position and also I have marked the Stop Loss level just below the previous Support line and the Take Profit point is set just above the previous resistance levels. So, I opened a buy trade at the entry point 0.129. The proof of the trade can be seen in the below image that is taken from the trade history of my account on Binance Exchange.
My Plans For Keeping or Selling it and Recommendations for others
The trade that I have executed is actually an Intraday trade. I want to do scalping by this trade within the day. I will not keep the coins so long and will sell the coin as I got any good opportunity. If the price reached my target, I will close my position.
So, it can be concluded that I am not planning to hold the coins for a long time. I have opened this trade to take advantage of the market movements. As soon as the price moves upward, I will close my position to secure good profit. I will probably see any other pair for scalping and securing my profit.
- Recommendation:
As a matter of recommendation for people, I want to recommend other traders also to open a buy trade at the time of making this analysis. From the technical analysis that I have done in the above section, I am very much sure that the price will react reverse and enter a bullish trend soon.
So, I also recommend other people to buy the Dogecoin, hold it for a short period of time, and then find a reasonable opportunity to sell the coins. It could also be a good long-term investment as Dogecoin is one of the strongest coins. But I cannot afford long-term investment so I am going with scalping.
These are only my recommendations but I am not an investment advisor. The people must have to manage their risk before entering the market because the market of cryptocurrencies is so volatile that we cannot predict the future price exactly.
Additional Information about Dogecoin
We can also find the social media accounts of the Dogecoin. We can get the latest and most important information and news from these social media accounts.
- Twitter:
In the above picture, we can see the official account of Dogecoin developers on Twitter with 3 Million followers. Here, we can access the latest news about Dogecoin, and also we can see the latest tweets and reply to those tweets.
- Reddit:
In the above picture, you can see the Dogecoin community account on Reddit. Here, we can also access the latest news about Dogecoin.
Discord of Dogecoin: https://discord.com/invite/dogecoin
Whitepaper of Dogecoin: Whitepapper
Moreover, we have seen many times that the organizer of Tesla Motors (Sir. Elon Musk) is also very much interested in Dogecoin. In fact, Dogecoin is one of his favorite cryptocurrencies and this thing affects the value of Dogecoin. He had mentioned the support for Dogecoin in his many tweets. One of them is as below. Recently, he made a tweet that is below.
Conclusions
In this post, I have made a buy trade by doing the technical analysis of the DOGE/USDT chart. I used three different technical analysis tools that are Relative Strength Index (RSI), Moving Averages (MA), and Parabolic SAR. By analyzing the market, I opened a buy trade and set the Take Profit and Stop Loss points.
Thanks to dear professors @kouba01 and @fredquantum for such an amazing opportunity by leading an amazing team.
Writer: @steemdoctor1 (Crypto Student)
Hello professor @kouba01. I think you have skipped my this post.
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