REPOST: [LRC/USDT spot trading]Crypto Academy Trading Competition - S6Q3 | Homework Post For Prof @pelon53

Hi friends, this is my second entry and competition in this week's lessons. I will be participating through the Investors team anchored by prof @pelon53 and my analysis would be on the LRC token (Loopring Network).

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Overview of the Loopring Network

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The Loopring Network is an open protocol that is highly scalable and is designed to support the overall building of the decentralized exchange platforms. We currently know that most of the cryptocurrency transactions are executed in the centralized platform and this comes with some perceived drawbacks, hence the decentralized exchanges are set up to ameliorate most of these drawbacks.

The Loopring Network was developed in such a manner that it uses the best sides of both systems (Centralized and decentralized systems) to come up with a unified hybridized front that sees that orders are matched in a centralized manner with on-blockchain decentralized order settlement.

Its utility token which is the driver of the protocol in the transaction and governance-related concerns was launched during the ICO in August 2017 where it was built and supported through the Ethereum network. The Loopring protocol was later deployed in December 2019 on the Ethereum network immediately after the ICO.

The Loopring Network which has version 3.0 has the capacity of reaching consensus with about 1400trades TPS with utmost guaranteed given to the security of process just as obtainable like its underlying Ethereum network in which it rides on. This guarantee is upheld with support from the zkRollup and the Onchain Data Availability (OCDA). But funnily, the Loopring Network can handle over 10,000 trades TPS when the OCDA is disabled but this doesn't laterally give the required security needed as seen with its underlying Ethereum Blockchain.

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Loopring Team and the LRC Token

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The Loopring Network was founded by Daniel Wang who is a software engineer in Shanghai China. He's a Computer Scientist with both his first and master's degrees with managerial and executive positions to his honor at different tech companies. Loopring Network was co-founded by "Yunrang Information Tech & cryptocurrency services firm Coinport Tech".

The LRC token can be found and traded in various exchanges like Coinbase, Binance, OKEx, and Bilaxy. They all have different pairs that make their liquidity readily available when needed. As a utility token that powers the Loopring Network, its average settlement fee is $0.002 per trade while using the Loopring 3.0 version.

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Trade Analysis of the Loopring Network

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The Loopring token (LRC) is valued at $1.07 as at the time of this report and with a Market Cap of $1,418,010,274 and a circulating supply of 1,374,513,896. In the last 24hrs, these mentioned parameters have a variance of 9.45% for asset price and 5.51% Market Cap.

Traded Volume under the last 24hrs was $1,214,034,484 with a 46.33% loss of volume traded. The LRC token has a market Dominance of 0.07% and a Market Rank of #68 based on the volume traded on the coinmarketcap site.

Also, from the historical Price trend analysis, the LRC token got to an all-time price high of $3.3227 with $3.31B volume traded on the 23rd November 2021. It also had a range price all through the period of 2019 and the end of 2021 with the price hovering around $0.13. Today, the LRC has had a rebound with a price value of over $1.

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Technical Analysis of LRC Token

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I will be using the two EMAs indicator lines for this Chart with the blue line indicator representing the short period and set at 25 lengths and the Redline indicator representing the long period and set at 50 lengths. Also is my RSI to determine the strength of a trend in overbought and oversold levels.

I quickly read the signals when there was a crossover (short period crossing above the long period) which signifies a bullish movement. The RSIs indicator also was found above the midpoint bands. I made my buy entry position immediately with the details below.

Market Buy Price: 1.0819
Amount Filled 18 LRC
Total Asset used: $19.47420000 USDT
Fee: 0.01800000 LRC
STOPLOSS: 1.0715
TAKE PROFIT: 1.1020

After 5Mins of trade, a sell setup was executed to take profit given to the direction of the market in favor of the entry order taken.

Market Sell Price: 1.0937
Amount Filled: 17 LRC
Total Asset used: $18.59290000 USDT
Fee: 0.01859290 LRC

Note: Due to the amount filled (17 LRC) being less during the sell setup, than what was bought, this affected the direct profit expected. Hence there is still another 0.982 LRC valued at $1.07 in the spot wallet which could not be utilized due to minimum requirements from the wallet. Therefore the total amount filled in USDT should now be $18.5929 + $1.07 = $19.6629**.

From this analysis and summation, we have the following deductions;

Buy price: 1.0819
Sell price: 1.0937
Price difference: +0.0118

USDT filled Amount (Buy): $19.47420000
USDT filled Amount (Sell): $18.59290000
(Unused sell amount: $1.07)
Profit = (Filled Amount_Sell +Unused Amount) - Filled Amount_Buy

Profit= ($18.59290000+$1.07) - $19.47420000
USDT
Profit = $19.6629 - $19.4742
Profit = $0.1887

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Conclusion

The LRC network is indeed an all-important development that who's emergence brought about a significant enhancement in the build-up of decentralized exchanges in the cryptocurrency space. It works in such a manner that it uses centralized order matching and on-blockchain decentralized order settlement.

There's a much prospect in investing in this token given to its historical price trend of over $3 and $3billion volume traded under the same period. It may not be classified as a penny cryptocurrency given its value of over $1.

This is the current price action of this coin after my report. This shows some level of strength and underlying asset acquisition ongoing for this asset