XLMUSDT SELL | S6T4 - Team Trading Post for Team Frontline.
The name and introduction of the project token, which exchanges it can be traded on, project / technical information of the coin/ team background, etc.
Why are you optimistic about this token today, and how long do you wish it can rise?
How to analyze the token? (This can be technical analysis and trading strategies learned from professor's courses) - This section is very important.
Your plan is to hold it for a long time or when to sell.
Do you recommend everyone to buy this token? Give reasons for your answer.
Any other thing you might want to share about this coin/token.
INTRODUCTION: Good day @abdu.navi03 and every member of this great community. Welcome to my entry post for the last day of season 6 week 4 trading competition.
The name of the token I will be trading is Lumen (XLM). XLM is the native token of Stellar and is a digital currency that is used within the network for the payment of transaction fees, used as an intermediary bridge currency for cross-border payments and lastly, it can also be used for creating digital assets within the Stellar network.
Stellar is a decentralized open-source protocol that allows you the transfer of cryptocurrency to fiat and vice versa and it is one of the best performing altcoins with a market capitalization of over $1 billion. This protocol is supported by Stellar Development Foundation which is a non-profit organization.
Some other things to know about the platform include
Transactions performed on the platform are faster than most of the popular cryptocurrencies as it takes approximately 5 seconds to complete and verify a transaction.
The ecosystem is protected against a DoS attack and it is unique as it is unique because every transaction costs just 0.00001 XLM.
The team that makes up the Stellar Foundation is one of the best on the market and this makes the network and its tokens widely accepted.
The platform also has the ability to launch Initial Coin offerings for other projects.
The network is faster and more flexible.
The system does not, make use of mining for its verification process but makes use of the SHA-256 algorithm for security. This makes the platform to be energy0efficient.
Finally, the platform provides high scalability as it can handle up to 2 TPS. This feature also brings about the wide adoption of the network.
The following are some of the exchanges XLM can be traded on.
Stellar was created or launched in 2015 by Jed McCaleb, Joyce Kim, and David Mazières in collaboration with Patrick Collison who is the CEO of Stripe. The idea behind the creation is to make the transfer of different types of currencies around the world easier and faster for people and the network can as well provides currencies and liquidity for people who cannot access traditional banking services.
Stellar Network is a worldwide collection of Stellar Cores and each of these Core is maintained by different people and organizations it is this distributed nature of the network that makes it reliable and secure. Stellar was initially or originally based on the Ripple Labs protocol and the blockchain was created as a result of a hard fork.
In its first year, Stellar gained nearly 3 million users. Built on the networks are tokens called lumens which is one of the best-performing cryptocurrency altcoins that is exchangeable all over the world.
Stellar network cryptocurrency Lumen is not mineable and to raise funds, the project launched an Initial Coin Offering (ICO) where they raised $39 million. Also, 100.000 billion tokens were created in its inception. The stellar network makes use of the Stellar Consensus Protocol which makes use of to Federated Byzantine Agreement (FBA) scheme to
secure the network. This consensus protocol is characterized by four properties which are Decentralized control, low latency, flexible trust, and asymptotic security.
Using this protocol, users can join the process of achieving consensus, and no single individual can end up with the majority of decision-making power.
The token experienced its All-Time Low of $0.001227 on November 18, 2014, and its All-Time High of $0.9381 on January 4, 2018. In 2019, about half of its outstanding lumens were burned which in turn brought about a spike in its price.
Looking at the past price statistics, XLM has been doing great over the past few years, and ever since its inception, it has brought about an ROI of 7746.08% according to CoinMarketCap as of the time of doing this homework.
We can see that the market was generally undergoing an uptrend, and during this period, we can see how XLM attain its All-time-high price of $412.96. During the latter part of 2021, we can see how the price dropped drastically. This tells us that XLM is a token that follows trends. We can as well see this in the increase in its price ever since the market has been recovering recently. This also tells us that profit can be made on the token as it trends.
Furthermore, XLM has a maximum supply of 50,001,787,998 XLM and there are about 24,700,879,458 XLM in circulation even though this doesn't 100% guarantee an increase in the price, however, it does tell us that its demand might likely increase and this will consequently bring about price increases and thus make it a good prospect for investment.
Moreover, XLM is currently the 31st biggest cryptocurrency by market capitalization with $5,767,035,358.48 and is trading at a price of $0.2332. By the time the market fully recovers from the downtrend, the price can reach its all-time high or even rise beyond it and thus bringing about huge profits in the long run.
Finally, the Stellar network allows is characterized by many features which in the long run will consequently bring about the wide use of the token as it is already doing, and thus, brings about a price increase and this also makes the token a better prospect for investment.
In this section, I will be making my technical analysis using price action and indicators to filter my entry. I will be using tradingview for my analysis and placing my orders on my binance futures exchange live account. Tradingview is a user-friendly trading platform, it has so many useful technical tools.
I will be trading XLM/USDT I will be doing my technical analysis using the current market price and chart analysis combining indicators to have a perfect entry.
- Opening the chart, I went straight to H4 to check the trend and I noticed we have a clear uptrend at H4, then I added the 13 and 50 EMA, and after adding it I went to H1 to see what's happening there.
- Getting to the H1 time frame, I noticed the market has been ranging for a long period of time and the candlestick was closing below the two exponential moving averages, then I added a stochastic indicator to the chart. The stochastic indicator was still in the middle range, so I have to wait a little bit to have a clearer entry.
- At 30min timeframe, I noticed the price was overbought and was ready to start dropping, then I took out my entry point at 0.23132 and my take profit and stop loss at. 0.2266 and 0.2730 respectively.
- I went to my binance futures to place the order at the current market price, then I came back a few minutes to check the trade and it was doing fine in profit here is the trade outcome can be found below in the image.
I won't be holding for long based on the fact that the direction of the market is not clear yet as can be seen from the short analysis I had one above. There could be a reversal or continuation from the unclear uptrend.
Yes. I will like to recommend STELLA popularly known as XLM to people, looking at the coin theoretically, it has some attractive potential that will make investors interested in the coin.
XLM is a decentralized blockchain which is has a user-friendly environment that attracted other coins to be built under it, it has a low-cost transaction fee that will enable buying in bulk, like some coins built under the Ethereum blockchain that has high transaction, this alone attract investors.
looking at it technically, XLM has been ranging for some days now, though it's in an uptrend we are expecting a break out which can serve as a reversal or continuation of the trend, so I will advise anyone investing in this coin should be a bit patience and enter the trade with good risk management.
CONCLUSION
A stellar network is a platform that allows the cross-transfer of cryptocurrencies. Built on it are the Lumens tokens which are the digital currency of the platform.
It is important for each trader or investor to carry out his or her analysis and to carry out some research before making any trading decisions. Furthermore, each trader should take either a sell or buy position based on what he or she is willing to take risks with (the risk-reward ratio).