REPOST: [MATIC/USDT BUY]- Crypto Academy / S6T2- Team Trading Contest Post for Reminane.
Hi Professor @reminiscence01 I am @ononiwujoel one of your students in Crypto Academy and a member of the steemit platform. I'm participating in the crypto Academy competition as a member of your group Reminane this week.
And for today's submission I'll be analysing and Trading with a cryptocurrency called Matic.
The name and introduction of the project token, which exchanges it can be traded on, project / technical information of the coin/ team background
For today's submission the cryptocurrency I will be analysing and Trading with is called Matic
Matic is the native token of the Polygon network. Polygon is not an independent blockchain of it's own rather it runs on Ethereum main blockchain using layer 2 Sidechains.
Polygon which is a decentralized platform was developed to solve the problems of scalability and high transaction fees in the Ethereum blockchain and so far has been successful in improving Ethereum functionalities as well as providing cheaper Ethereum transactions and with an impressive speed as well.
Polygon is web 3 focused and is used to develop applications and dApps with improved scalability, security and low costs. There are currently thousands of dApps using Polygon to scale their performance.
Polygon uses Plasma PoS consensus protocol to secure its blockchain and combines Ethereum blockchain and other ETH-compatible blockchains into a full-fledged multi-chain thereby making it possible for Web 3 developers to have access to Ethereum oriented blockchains without the limitations in Ethereum blockchain like high gas fees, scalability problems, transaction speed, etc.
Matic blockchain was founded in 2017 but was rebranded to Polygon although the native token of the network remained Matic. The co-founders of this project are Jaynti Kanani, Anurag Arjun, Sandeep Nailwal, and Mihailo Bjelic.
The IEO of this project was conducted in 2019 on Binance which raised an impressive sum for the project and ever since Polygon has continued to grow, gaining more popularity and market on the crypto space as well as developing several projects and protocols that improves its potentials including Polygon Studio, Polygon Edge, Polygon Avail, Polygon Hermez, Optimistic Rollups, Polygon Nightfall, Polygon Miden as well as several other projects yet to be announced.
Matic is an ERC-20 token and can be brought in several decentralized exchanges as well as centralized exchanges as well. It can also used on Polygon Bridge to swap assets between Polygon and Ethereum network.
Matic is also used in many blockchain platforms including blockchain games, Staking platforms, crypto exchanges, AMMs and DeFi.
Polygon (Matic) currently ranks #16 on coinmarketcap with a 24hr trading volume of $1,449,430,599.72, market capitalization of $12,466,106,887.18, market dominance of 0.64%, circulating supply of 7,557,850,960 MATIC and total supply of 10,000,000,000 Matic.
Matic Markets
Matic is traded on majority of crypto exchanges and decentralized wallets including Binance, Huobi Global, Coinbase, Sushiswap, Uniswap, Gate.io, Kucoin, Bitfinex, Kraken, FTX, Bybit, OKEx etc. Having several hundreds of pairs in the crypto market.
Why you are optimistic about this token today, and how long do you u wish it can rise.
Matic stands as the best Ethereum-scaling solution platform and it's successes can be sine in the massive growth in its market capitalization and token price over the years. Matic currently ranks among the top 20 coins on coinmarketcap and is adopted by many DeFi projects. This platform is also preferred by developers to the Ethereum main blockchain because it is scalable, secure and has lower gas fess. It also combines different Ethereum-compatible blockchains in a multi-chain fashion.
So this project is very attractive to developers and crypto investors which make up the bulk of its market.
It is also on record that Matic was traded for as low as $0.003 back in May 2019 but today its trading around $1.6 so we can see the massive growth percentage in these few years. And with the current state of the crypto market which seems to be recovering from a long bearish trend we are likely to see Matic above $2 in coming weeks.
Observing the MATIC/USDT chart above with a 4hr time frame we can see that the market just ended a ranging market phase and is starting a bullish trend which is confirmed by the chart and technical indicators. We have our EMAs taking the position of dynamic support and we can see the shorter EMA cross above the longer EMA which are all signals confirming a possible bullish trend although I can't ascertain how long it will rise. So It is a good idea to engage the market now.
Technical Analysis of MATIC using the knowledge gained from Crypto Academy
In this technical analysis for trade entry I'll be using the chart and three technical indicators including the RSI indicator and Exponential Moving Average.
The Relative Strength Index Indicator helps us to analyse price movement and the relative strength of trends. This help us to identify strong trends, trend reversal signals, relative market psychology and forecast possible price movements. On the updated RSI chart below we can see two lines representing the asset price movement, these lines signal trend reversals when the second line crosses the first and there are also two strong zones on the chart that gives information on the trading activities in the market as to when the asset is overbought or oversold.
The EMAs on the other hand is a very popular technical tool used for analysing trending markets to identify uptrends, downtrends, trend reversals, trend continuation, trade opportunities and also to forecast possible trend movements in the market.
So I'll be using these indicators to form a confluence trading strategy so as to confirm the signals and also to filter market noise and false signals.
I hereby open my the MATIC/USDT pair chart on tradingview to set up my technical tools and perform my analysis
The MATIC/USDT chart above with a 4hr timeframe shows us the market structure of this asset. We can see that the market is recovering from a strong bearish which had weakened at some point due to the change in market psychology. The market slides into a brief sideways movement and then gives signals of an uptrend after which it commenced.
The shorter EMA (9 EMA) cross above the longer EMA (20 EMA) at the point marked and continued upwards with a mixture of bullish, bearish and indecision candles showing that the market is gradually adjusting for a bullish although we are yet to see the very long bullish candles. We can also observe that this signal is confirmed by the RSI at the point marked. The RSI shows an uptrend and is yet to get the zone of overbought so this asset is like to continue rising for sometime.
From our chart and technical tools we can agree that this market has entered a bullish phase and we're expected the huge bullish candles to start showing up in short period so I'll be making my trade entry with a Buy trade after which I'll watch the turn of events should incase the uptrend fail I'll surely enter a Sell trade
I made my trade entry for a Buy trade at $1.64 with stop loss at 1.59 and take profit at 1.74 hence a profit/loss ratio of 2:1.
I'm using my Huobi Global account wallet to execute this trade entry
The trade entry has been ordered so we'll just wait for it to be executed soonest
Your plan to hold it for a long time or when to sell.
My plan to hold this position is directly based on the outcome of this trade and the price movement in the nearest future. If the trade is positive and the market continues on a bullish trend than I'll be holding for sometime until the price action shows a possible bearish signal. I'm a short term trader on this asset so I don't have plans of holding for a very long time.
Do you recommend everyone to buy this token? Give reasons for your answer.
Yes I do recommend people to go for this token especially for long term investors because it is great project with potentials and a strong market. However I'll advise short term traders buying this token to be very observant and use price action with technical indicators because at the time being the price movement of this asset is almost unpredictable and it is largely influenced Ethereum network such that when there is bearish on Ethereum its likely to affect Matic one way or the other. But generally this is a successful project with thousands of projects depending on it, and it also enjoys a massive fan base and users.
Conclusion
Polygon (Matic) is arguably the best and largest decentralized Ethereum-scaling solution platform operating on the layer 2 of Ethereum blockchain. The scalability and high gas fees issues that has made working with Ethereum network quite difficult for many developers have been solved by Polygon (Matic) making it a very important platform for developers on Ethereum and Ether-compatible platforms.
Polygon is also referred to as the Ethereum internet that combines Ethereum and other blockchains into a multi-chain with emphasis on interoperability, scalability, speed and low costs.
It was a great time analysing this crypto token and Trading with it too.
Cc: Professor @reminiscence01, @nane15