XLM/USDT Long Future Trade | S6T3 | Team Trading Contest Post for Reminane
Hello everybody.
Welcome to this post. I hope that all of you will be good and happy and enjoying your good health with the grace and blessings of Almighty Allah. Today, I am here to present the Trading Post in Season 6 of the academy that is the Steemit Crypto Trading Competition. This is a very golden chance for all of us to utilize the knowledge that we have gained from the academy so far. So, let's start the task without any wastage of time.
This is my 3rd trade this week and I am going to open a Long Future Trade in the XLM/USDT pair. Let's discuss the reason for selecting this pair and the trade-in detail.
Coin Pair and Exchange Name
Today, I am going to execute a Long Future Trade on one of the most popular and impressive pairs of crypto lovers, actually, I am talking about the XLM/USDT pair. I will execute the trade after proper technical analysis of the pair. I will try my best to execute a profitable trade.
The XLM token is one of the most popular and successful crypto coins of the time. The main reason behind the popularity of the XLM coin is its relation with one of the most popular networks Stellar. At this time, the XLM coin is also present in the top 35 crypto coins. This pair is also one of my favorite pairs as I have executed many trades in this pair in past and the average result is positive. So, these are some reasons behind the selection of this pair for today's trade.
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 Stellar (XLM)
- Introduction and History:
The XLM coin is actually the native currency of the Stellar Network which is one of the most famous open-source platforms. The XLM coin is actually known as Lumen in the blockchain. It is also one initial altcoin that was developed after the success of Bitcoin. Although, the price of the Stellar (XLM) is low its market capitalization is impressively great.
The Stellar platform is actually an open-source payment technology platform that connects the banks and other money-transformers with the public. The main reseason behind the development of this platform was to eradicate the problem of high-costs and time-wastage that is common in the traditional financial system (Banks). This thing is looking something like the Ripple Network. Yes, the Stellar Network is much similar to the Ripple Network.
The Stellar Foundation was developed in 2014 by one of the most prominent personalities in the financial world, I mean Sir. Jed McCaleb. He was also founded as the co-founder of the Ripple Network. He tried to organize such a platform that can connect the public and the banking sector so that the public can access more faster and accurate transactions. Thanks to him for developing such an amazing platform where the users can make efficient transactions.
The users of the Stellar Foundation can use the XLM (Lumen) coin to carry out their transactions in the network. The users can send and receive different digital and fiat currencies through this platform. The XLM is also used to improve the scalability of the Stellar Network. The Stellar Network can carry out more than 1000 transactions per second. Thus, due to this use, the XLM coin is of high voltage in the cryptocurrency world.
- CoinMarketCap:
On exploring the CoinMarketCap of the XLM coin, I have got a number of useful information about the XLM Token. So, have a look at the following screenshot in this regard.
The information that is obtained from the above screenshot can also be expressed in the form of tabular data that is given below.
| Coin Name | Stellar |
|---|---|
| Nick Name | XLM |
| Rank | 31 |
| Current Price | $0.2151 |
| Market Cap | $5,306,941,003 |
| Fully Diluted Market Cap | $10,757,000,123 |
| Market Volume | $340,421,412 |
| Volume / Market Cap | 0.06944 |
| Circulating Supply | 24.67B XLM |
| Total Supply | 50,001,788,055 |
| Max Supply | 50,001,806,812 |
- Historical Price Data:
From the above screenshot, we can observe that the All-time High price of XLM is $0.9381 (04, January 2018) and the All-Time Low price of XLM is $0.001227 (18, November 2017).
- Available Markets:
As I have discussed that the XLM coin is one of the most popular coins at this time. So, it is available on almost all popular and successful exchanges and swap platforms. Some of them are listed below.
Technical Analysis of AVAX/USDT pair
As we all know that the technical analysis of the price chart is very important before executing any trade in the market. The volatile nature of the crypto markets urges us to analyze the market completely by any type of analysis (Fundamental, Sentimental, or Technical).
The Technical Analysis deals with the use of the technical analysis tools like indicators on the charts of the crypto assets to determine the future prices of the market. There are many technical analysis tools but today I am going to use two different technical indicators that are discussed below.
- Relative Strength Index:
Relative Strength Index (RSI) is actually an oscillator and a volatility-based indicator that can be used to determine the Overbought and Oversold regions in the market. It ranges from 0 to 100. When the line is above 70, it is an Overbought region and a Bearish reversal. Similarly, when the line is below the 30 range, it is an Oversold region and a Bullish trend reversal.
- Triangular Moving Averages:
The Triangular Moving Averages is also known as TRIMA simply. It is actually a trend-following indicator that can be used to determine the current trends of the market, as well as, the trend reversals that are happening in the market. When the line of TRIMA is above the price action, it is a Bearish signal and when the line of TRIMA is below the price action line, it is a Bullish signal.
A combination of a pair of TRIMAs can be used to determine the strong trend reversals in the market with the use of the crossover strategy. Two times of different lengths (periods) are used. When the longer period TRIMA line cuts the shorter period TRIMA line downwardly, it is a bullish signal. When the longer period TRIMA line cuts the line of the smaller period TRIMA line, it is a Bearish signal accordingly.
Now, have a look at the below image to observe my trade setup with the use of the TRIMAs and the RSI collectively.
In the above screenshot, we can see that the trade setup was clearly seen in the image. First of all, I opened the XLM/USDT pair and selected the timeframe of only 5 minutes. I drew the Support and Resistance levels on the chart and applied the two indicators.
In the above image, we can observe two points that are discussed below.
We can observe from the TRIMAs combination that the longer period TRIMA line (Blue) cut the shorter period TRIMA line (Green) and started moving below it. So, it is a Bullish Crossover and an uptrend is to be expected soon.
The Bullish signal is confirmed by the RSI indicator. We can observe that the line of the RSI indicator was moving upwardly and was above the mid-line. It seemed that it was just near to enter the Overbought region (above 70).
Keeping in view the above two points, I decided to open a Long Future Trade in the market at this condition as both of the indicators were showing the bullish signal. So, I opened the Binance exchange and executed a Long Future Trade with a leverage of 20X. For proper risk management, I have set the Take Profit level at the Resistance level, and also the Stop Loss is set with the ratio of 1:1.
The Long Future trade that I have executed in the market of XLM/USDT pair can be seen in the below screenshot.
My Plans and Recommendations
As we can see in the above section I have executed a Buy/Long Future trade in the market of the XLM/USDT pair after proper technical analysis of the chart. I opened this trade not for holding it for a long time as I have selected the low timeframe of 5 minutes only for analysis. Moreover, I think the Future Buy trade on the XLM/USDT pair is not a good long-term investment strategy.
So, I will not hold my Buy position for a long time. As I have set the Stop Loss and Take Profits levels in the analysis so I will close my position when the price hits my Take Profit level. I am a scalp trader so I always tend to do scalping. That's why I will close my position and find another pair for scalping.
- Recommendations for Others:
As a matter of recommendations for others, I will surely recommend people to enter the market with a Long trade at the time of making this post. According to my analysis, the price will surely hit the Take Profit level so traders can close their positions at that point for a reasonable profit. So, it is recommended to enter the market at this time and make a good profit at the Resistance level.
For long-term investment, I will never recommend anyone to enter a long-term trade here as Future trading is not so good for long-term investment. Moreover, I am not an investment advisor so one must have to do his own technical analysis properly for stepping into the market of a highly risky nature.
Additional Information about Stellar (XLM)
We can also find the social media accounts of Stellar (XLM). We can get the latest and most important information and news from these social media accounts.
- Twitter:
- LinkedIn:
We can follow and visit all these social media accounts on daily basis to get updated about any new updates about the Stellar Foundation or XLM Coin
Conclusion
In this post, I have made a Long Future Trade by doing the technical analysis of the XLM/USDT chart. I used two different technical analysis tools which are the Relative Strength Index (RSI), and the combination of two TRIMAs (One of 10 and the other of 25 periods). By analyzing the market, I opened a Long Future Trade and set the Take Profit and Stop Loss points at the ratio 1:1.
Thanks to dear professors @reminiscence01 and @nane15 for such an amazing opportunity by leading an amazing team.
Note: Note: All the screenshots are taken from CoinMarketCap, TradingView and Binance.
Writer: @steemdoctor1 (Crypto Student)
