LUNAUSDT - SELL - | Steemit Crypto Academy | S6W4 - Team Trading Contest Post for Team Frontline | by @benjamin09
The name and introduction of the project token, and which exchange it can be traded on, project/team/technical background, etc.
The LUNA token is a token which was created on the Terra Blockchain. The Terra Blockchain is a fast rising blockchain which was created in 2018 by Daniel Shin and Do Kwon. This platform became the popular success it is through the use of its stable coins that create a balance for fiat currencies such as USD etc. Acquiring a stable coin will require the use of the native token of the Terra blockchain which is the LUNA token. The LUNA token has since then grown so much to the point of being among the top 10 crypto currencies according to market cap. Let us see more on the LUNA token below.
The LUNA token being a very successful token and ranking among the top 10 crypto currencies, is being traded and used on nearly all exchange platforms such as Binance, KuCoin, Huobi Global, Poloniex, Bittrex etc. It is also being traded in pairs with so many currencies such as USDT, BNB, BUSD, BTC etc.
The following inormation is gotten from above.
- Price - $103.22
- Rank - 9
- Market Cap - $36,596,036,194
- Fully Diluted Market Cap - $78,207,859,859
- 24H Volume - $2,027,753,741
- Circulating Supply - 354,539,375.90 LUNA
- Max Supply/Total Supply - 751,520,469
Why are you bearish on this token today and how long do you think it can fall?
As we can see from the above price statistics of the LUNA token, the price has been on the rise the past few days to the point where an all time high was recorded yesterday for this coin. But due to this massive bullish action, there must be a retracement and distribution as the price is seen to experience a drop in the 24hour price. This encourages me to go towards the sell market during this market phase.
Technical Analysis
For this trade, I will be using support and resistance lines, the volume indicator, RSI indicator, and the Parabolic SAR indicator.
From the above screenshot, we can see that the LUNAUSDT currency pair had entered a consolidating market with the price bouncing off the support and resistance zones. Then as is indicated above, there was a false breakout when the price broke the resistance. I waited for the retracement just to find out that it was a false breakout. Later on, we can see the breakout at the support line. I waited again for the retracement at the support (now turned resistance). This time, the price bounced off the resistance line and downward movement is expected. In order to confirm this, I checked the RSI which was below the 50 level (the bearish zone). Also, the volume indicator has been on the rise indicating the change in market phase. This analysis was done on a 15 minutes timeframe. I decide to do multi-timeframe analysis so as to confirm the trade.
In the above 1 hour chart, we can see the market movement thesame as the 15 minutes timeframe, with the break and retest at the support. Here, we can see the Parabolic SAR having dots above the price. This also comes to confirm the bearish movement prediction.
Binance mobile app
As is seen above, I placed a sell market order at the current market price. I used the Binance Futures trading for this trade. I used a leverage of 20x and at a margin of $5.19. This amount is 20% of my trading capital so, my trading capital is safe in case of unpredicted outcomes.
Your plan to keep it for a long time or when to sell it?
Binance mobile app
Being a scalper, I don't intend to hold this trade for long. It is for this reason why my exit orders have already been placed. With my stop loss being $107 and my take profit being $100 all such that the risk:reward ratio is 1:1.5 maximizing profits over losses.
Do you recommend everyone to buy? Give reasons for recommending or not recommending
The LUNA token has been on a bullish run for the past few days and like we all know, there must be a correction of the trend where the price will experience a reversal. This is that time as we can see in the above screenshot, the previous low has been broken destroying the higher-low formation of the bullish market. The market then entered a range and from there, my breakout was gotten. I would recommend everyone to join this bearish run and sell.
Conclusion.
As we have seen above, I have done my fundamental analysis of the LUNA token and then, done my technical analysis with the use of support and resistance lines, the RSI and Volume indicators and also the Parabolic SAR indicator. Also, I have placed my trade with the use of a good risk management strategy that keeps my trading capital safe despite the trade outcome.
Thank you for reading.
@abdu.navi03
@shemul21