MATIC/USDT Sell | S6T3 | Team Trading Contest Post for Reminane
Hi Professor @nane15, I am @ononiwujoel one of your students in Crypto Academy and a member of the steemit platform. I'll be participating in the crypto Academy competition as a member of your group Reminane this week.
For today's submission I'll be analysing and Trading with Matic cryptocurrency.
About Matic Token
Matic is an ERC-20 token that serves as the native coin of an Ethereum Sidechain network called Polygon.
Polygon is very similar to the polkadot and cosmos network in terms of interoperability and multi-chain structures except that Polygon is not an independent ecosystem. This blockchain is a layer 2 scaling solution on the Ethereum blockchain hence improving scalability and speed on the blockchain while using Ethereum’s security and strong ecosystem as its advantage.
Polygon uses a special consensus protocol from the combination of Plasma framework built on PoS in the Ethereum blockchain. This protocol makes the sidechain very fast with speed of 65,000 transactions per second as well as makes it very scalable and with low transactions cost. Polygon is arguably the best Sidechain on Ethereum main-chain and has made it much easier and cheaper for developers to work with the blockchain.
Polygon is utilised by developers to build several types of infra and it supports DeFi protocols on Ethereum as well as many dApps, smart contracts and Web 3 related platforms due to the advantages of speed, scalability, less complexity, low costs, interoperability with other Ethereum based blockchains and security.
This project was launched in October 2017 by it's co-founders Jaynti Kanani, Anurag Arjun, Sandeep Nailwal, and Mihailo Bjelic as Matic Network on Ethereum blockchain and was very active in developing the network before moving to it's own network now called Polygon but retained the name Matic for its native token.
Matic conducted its IEO on 24th to 25th April 2019 on Binance Exchange and was able to raise about $5,000,000 in the sale of 1,900,000,000 Matic tokens. Price at IEO was $0.00263 and has been able to grow over $1 in recent times and Polygon also ranks among top 20 crypto coins on coinmarketcap so this project has been a huge success so far.
Matic operates with Ethereum wallets and platforms because its an ERC-20 token and its also used in almost all popular crypto platforms. Polygon Bridge also makes it possible to swap between Matic and Ethereum based assets
Matic ranks #16 on coinmarketcap with Market capitalization of $11,266,842,671.75, 24hr trading volume of $594,955,116.75, Market dominance of 0.60%, circulating supply of 7,696,069,521 MATIC and total supply of 10,000,000,000 Matic which is same as Maximum supply.
Matic Markets
Matic is used in several DeFi platforms, blockchain applications, AMMs, Yield farming platforms and crypto exchanges.
Matic is popular in both CEXs and DEXs Markets, Ethereum wallets and decentralized wallets including Binance, Huobi Global, Gate.io, Kraken, OKEx, KUCOIN, Bittrex, Uniswap, Sushiswap, Coinbase, Gemini, Poloniex, Pancakeswap and several others with hundreds of currency pairs for swap and exchange in these platforms.
Why are you bullish on this token today and how long do you think it can rise?
Polygon (Matic) back in 2017 was traded at $0.00263 and was trading around $0.003012 in 2019 which is just 3 years ago but today the price is rallying over $1.4 and showing signs of going maybe times two of that in the nearest future so this project is an impressive success.
Matic also have a strong community and market of both traders and developers in the Ethereum network because it solves the problem of scalability, complexity and high gas fess in Ethereum network and also makes it possible to smoothly work between several blockchains on Ethereum easily in a multi-chain structure. And this project is behind so many dApps and Web 3 applications thereby making it a very strong asset with growing market.
From the statistics of this token between its launch till date it is very certain that we'll see this token trading between $2 to $4 this year so its a good place to invest.
The chart above gives us MATIC/USDT currency pair on a short time frame and we can see that the A strong bearish just came to an end and the price is picking up for a bullish which will likely also be short but at least for we can make profits for the meantime before the also comes to an end. The EMAs of 20 period have crossed above the EMA of 50 period showing signal of Trend change and both EMAs are now serving as dynamic support to the price which is also a signal of a bullish. It is a good time to enter the market for buy trade on an intraday or hour long setting.
Technical analysis of Matic and Trade Entry
In this section I'll be using price action and a combination of 20 EMA, 50 EMA and Random Index indicators for confluence
EMA is an abbreviation for Exponential Moving Average and just like it's name implies this indicator calculates the average price of an asset with respect to a given period of time. This indicator is commonly used and very effective in trending markets to identify trends, trend reversals, trend continuations, good trade opportunities and forecasting price movement.
Random index indicator also known as KDJ indicator on the other hand operates similarly to Stochastic indicator but is more advanced. This indicator signals trend changes when the J-line (black) crosses other lines and also signals when the asset is overbought or oversold. The horizontal zones at 70 and 30 in its chart represents the overbought and oversold zones respectively. So this indicator shows volume and trade interactions in the market.
Using these indicators together for confirmation of market signals to filter noise and false signals makes my trade less risky and more focused with better chances of success.
We have MATIC/USDT pair chart above and the technical indicators have been added for analysis.
We can observe that this market is on a bearish trend showing lower highs and lower lows with retracements which is usual with bearish markets but after the last strong retracement the shorter EMA crossed below the longer EMA showing signal of a downtrend which in this case is a trend continuation so I waited for the next lower high to place my entry.
The KDJ indicator also shows the price trading above the 70 point zone signalling that the asset is currently overbought hence a downtrend should take over the market
So from both indicators and the chart we have signals that there is a bearish trend continuation in the market so I should be going for a Sell trade
So I made my entry at $1.467 with my stop loss at $1. 487 and Take profit at $1.427 giving a Risk/Reward ratio of 1:2.
I'm using my Huobi Global account to execute this trade.
I've made the trade order and now we'll await execution
Your plan to keep it for a long time or when to sell it?
From the time frame in this trade we can tell that this is not a long-term position. I opted for sell because that's the direction of the market currently and its best I sell and wait for change in trend so I can buy a position and hold till next bearish. So I'm not holding this asset for now
Do you recommend everyone to buy? Give reasons for recommending or not recommending.
Yes I recommend MATIC tokens to anyone interested in investing in Crypto assets. Matic like we have seen so far is among top rated crypto projects and has a growing market with a positive psychology as well as many projects being built on the network. Matic is also compatible with ERC-20 and provides scalability, interoperability and multi-chain structure to the Ethereum main-chain so this is a Crypto asset with strong backing and usage in the crypto space and you can be sure you're not investing in a fake and weak asset.
Matic is also used in staking platforms for yield farming as passive income and also in several exchanges and crypto based platforms for buying goods and services so this is a great asset for investment and I'm very optimistic about investing in it.
Conclusion
Matic as the native coin of Polygon has its reputation as the best scaling solution in Ethereum blockchain and has largely improved Ethereum network with its multi-chain fashion which allows Sidechains on Ethereum to work effectively and through its Polygon Bridge it allows swapping with Ethereum asset so this project has improved a number of weaknesses of Ethereum network including scalability and high gas fees which makes it unattractive to developers.
Polygon has also been able to power many applications, DeFi projects and Web 3 platforms using its speed, scalability and lower cost combined with the strong security of Ethereum blockchain to its advantage.
It was really interesting to analyse and trade this asset as part of the contest and I appreciate it
Cc: Professor @nane15
Hello bro, your #tag is not correct
Thanks Sir
I've corrected it now 👍🏾