SOL/USDT Buy | S6T3 | Team Trading Contest Post for Reminane
Hello everyone, this is my third post on this week’s steemit trading contest. In this post, I have carried out some analysis on the Solana token and I will be publishing it in this article.
The name and introduction of the project token, and which exchange it can be traded on, project/team/technical background, etc.
Solana is a blockchain on it’s own like the Ethereum blockchain. This blockchain supports so many Cryptocurrencies just like other blockchain and it also supports NFT projects as well. The Solana blockchain is also open to the support of DAPPs within the blockchain. The native token of this blockchain is called Solana(SOL). The Solana blockchain is a decentralized platform and for that matter the SOL coin is also a decentralized coin. The SOL token is staked within the Solana blockchain and it is used to enhance the security of the blockchain. It is also used to pay transaction fees within the blockchain. Transferring of assets with the blockchain is also enhanced by the SOL token.
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Transactions within the Solana blockchain is very fast and also very secured as well due to the high security level in the Solana blockchain. The blockchain also charges very low transaction fees as compared to the Ethereum blockchain.
This Sol token has a very reliable project and recently the coin made a very strong bullish trend.
The blockchains in general have a lot of scalability problems and this is the main reason the Solana blockchain was developed. This blockchain has helped in solving the scalability problems.
The Solana blockchain is a very unique blockchain because it combines both the proof of Stake and proof of history consensus mechanisms to carry out its functionality.
The Solana blockchain carries out it’s transactions very fast. It is able to complete over 50000 transactions per second and this makes the fastest blockchain available at the moment.
The SOL token can be traded or kept in the wallet of several exchanges. Some of these exchanges include Binance, Huobi pro, KuCoin, poloniex, etc.
Why are you optimistic on this token today and how long do you think it can rise?
Personally, I am very optimistic about the project of the Solana blockchain because the project looks to have a very promising future. Holding of the SOL token will make us get some good profit because the token is very likely to be on the rise any moment from now.
The Solana blockchain also looks promising because it undertakes very fast transactions. This blockchain carries out fast transactions even more than that of the Ethereum blockchain.
The transaction fees of the Solana blockchain is also relatively low as compared to other blockchains. This encourages more people to stake within this blockchain and this is why the future looks promising for the Solana blockchain.
In addition to the above mentioned, the Solana blockchain also support some variety of projects such as NFTs, smart contracts among others. This opens the scope of the Solana blockchain to several things.
Now let’s look at the statistics of the SOL token on CoinMarketCap.
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Looking at the screenshots above, we can see that the SOL coin is ranked #9 on CoinMarketCap. This token has a market cap of $33,383,060,873.38.
The highest point the market has ever reached is $260.06 when it reached its all time high on the 6th of November 2021. The SOL token also has a circulating supply of $322,758,509 SOL.
Analyzing the token
First of all, I will go to the tradingview site and then open the chart. In this section, I decided to add the candlesticks because they are much clearer and the produce less noise during the technical analysis.
Then I went on to add three different indicators which will help me in this analysis and then confirm my entry point. The indicators are added are the EMA, the parabolic SAR indicator and the RSI indicator.
I started by adding the EMA.
Screenshot from: Tradingview
Looking at the chart above, I first of all marked the support and resistance levels. We could see that the price retested the support level and was making an uptrend. We could also see that the EMA indicator was below the price which also signals an uptrend.
Screenshot from: Tradingview
I then went on to add the parabolic Sar indicator. The dots of the indicator that were forming below the price indicates a bullish trend in the market which confirms the earlier signal given by the EMA indicator. It then confirmed my entry point.
Screenshot from: Tradingview
Then finally, I added the RSI indicator and we can see from the chart above that the RSI was below the 30 level which indicates an uptrend. So this confirms my entry point and the signal given be the first two indicators (EMA and Parabolic SAR).
So after this confirmation, I went to the Huobi pro exchange to place my Buy order in a spot trade. The details of the trade can be seen below.
Screenshot from: Huobi pro
Your plan to keep it for a long time or when to sell it?
Like I said earlier, the Sol token has a very good project and I has the tendency of making a rise in the near future. Due to this record, I have decided that I will keep this coin in my wallet in anticipation of making some profit from it when it rises eventually.
Based on the fundamental analysis I did on this coin, we could see that the coin has a very low circulating supply which means that the demand of the coin on the other hand is very high. The high demands means the price of the coin will rise very soon and I don’t want to miss out on this opportunity. We also saw that the market cap of the coin was very high which also signals that the coin will make a bullish trend very soon.
The Sol coin is also known by most people so they’ll be more investment into it and the price will rise eventually.
Due to the above reason, I have decided to hold this coin in my wallet and I expect that I will make some profit from my decision.
Do you recommend everyone to buy? Give reasons for recommending or not recommending.
I will advise that all traders invest in the SOL token because I believe that the project of the SOL token will keep developing and the price will also keep rising.
So due to this reason, I will recommend that many people hold the SOL token in their wallets and they’ll surely make profit from that.
However it is advisable that anybody ready to invest in this coin make their own research on the coin before making any entry into the market. This will broaden your knowledge on the coin and you can take the best decision for yourself.
Cc:
@nane15