Repost | ALGO/USDT Sell - Crypto Academy / S6T4- Team Trading Contest Post for Reminane
Hello steemians, I would love to join Prof. @reminiscence01 to welcome each and everyone of us to week one of the crypto academy trading competition. Today, I will be trading ALGO/USDT pairs on spots trading to make some good profits. If you reach the requirements, you could join me to do same by reading up the competition rules on this link.
Introduction to ALGO
The native token for the Algorand blockchain is the ALGO token. This means, ALGO is the official currency of Algorand and will be used to pay transaction fees, stake and participate in governance operations on the platform.
Algorand is a smart chain blockchain which tries to solve the blockchain trilemma experience by a lot of cryptocurrency blockchains today. It uses the Pure Proof of Stake consensus mechanism to achieve this. On the platform, there are relay nodes and participation nodes. The relay nodes are the primary nodes and they work hand in hand to randomly select a participation node to validate a block. This selection is highly influenced by the amount of ALGO a particular participation node stakes.
On the Algorand blockchain, there are a 100 of these relay nodes and the minimum stake for participation nodes is 1 ALGO. Like I said, the higher the stake, the higher the possibility of being selected to validate a block. With all these put in place, the Algorand blockchain is scalable and capable of processing more than a 1000 transactions per second.
Algorand is compatible with conventional programming languages like JAVA, JAVASCRIPT, Python etc and this makes it easier for developers who haven't learnt blockchain codes like solidity to build their applications.
ALGO is ranked 29th with a market cap of $6,493,238,225 and a circulating supply of 6.64 billion ALGO. It’s current price is $0.9781 and if we look at the above image, in the last year, ALGO has attained a high of $0.2.83 and a low of $0.6744
ALGO can be traded on the following exchanges.
- Binance
- Kucoin
- Huobi
- Gate.io
- Coinbase
- OkeX
- Fairdesk
- Upbit
- Crypto.com
- Kraken
- Bitfinex
- Bybit etc.
Well, I'm just here to do some intra-day trading and take out some profits. I did some analysis and figured out the price may go into a downtrend so I decided to sell some of my holdings of the ALGO token.
From my analysis chart above, I used the support and resistance price action technique with the bollinger bands and volume indicator on a 15 mins chart.
As you can see above, price hit the resistance level and reversed. From my understanding of support and resistance zones, at the point of resistance, price should reverse to a downward trend.
The bollinger bands are used to measure volatility. Price should be contained in between the two bands. On the chart, price was around the upper band, which means the trend will be reversed back to the lower band or around the center of the band. Looking at the volume indicator, there was an increase in the volume sold. With all my analysis, I decided to make a sell order.
- First, I made a sell trade at the market price on spot trading ALGO/USDT.
- I changed the trade type to an OCO trade in order to include my take profit price and stop loss. We should all note that, when using the OCO feature, for buy trades, you trade on the sell side and for sell trades, you trade on the buy side.
On the trade,
Entry: $0.9441
Take profit: $0.9060
Stop loss: $0.96
If you look at the chart above, price didn't hit my take profit level. My analysis weren't entirely accurate so I made some losses.
No, I don't recommend holding ALGO and I , myself intend selling off my entire holding after my analysis today.
Competition: Algorand is a good smart contract blockchain but concerning speed it doesn't stand a chance against big competitors like Solana or avalanche. They all have faster transaction speeds, avalanche ranging ranging from 4000 to 6000 TPS and Solana 60,000 TPS. Also, the Ethereum 2.0 upgrade is still on the way and once it is fully implemented, it will solve its scalability problems, hereby making Ethereum a stronger and better platform than algorand. When this happens we may find developers migrating from the Algorand platform to the Ethereum platform and this may not favor the future value of ALGO.
In essence, all I'm trying to say is that Algorand is not so special to match its competitors in the long run.
Today, I made a sell trade on ALGO/USDT trading pairs. Even though I didn't make profits, I learnt a lot today. I so much thank all the Profs for teaching me all I know