REPOST: SHIB/USDT BUY | 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 a popular meme coin called SHIB.
The name and introduction of the project token, and which exchange it can be traded on, project/team/technical background
SHIB is the native token of Shiba Inu decentralized ecosystem. This ERC-20 token falls under the several pet dog motivated meme coins and is currently ranks as one of the most successful coins under $1 value. Shiba Inu is a lovely Japanese dog breed, quite expensive and popular among pet lovers, this dog image was used as the trademark for Shiba Inu meme coins when it was created and was able to attract lots of investors most of who were motivated by Dogecoin success story when it rose to $0.75 and didn't want to miss out on another meme coin similar to Dogecoin.
Shiba Inu was listed on Coinbase exchange in Sept 2021 and this saw the token rising over 40% coupled with regular mentions it enjoyed from influential people like Elon Musk, Vitalik Buterin, some celebrities and several popular crypto experts. These factors all contributed to its growth as lots of interests were aroused in the crypto space on the token.
Shiba Inu also has a strong community and market made up of many pet motivated artists working to bring the community into the NFT Market, traders and several small-time investors and has continued to record successes so far. SHIB stands as the top competitor to DOGE in the meme coins category having a large market capitalization and Trading volume that has continued to boost impressively over the years.
Shiba Inu has its decentralized exchange called Shibaswap which is a fork of Sushiswap and is also known to have provided rescue assistance to many Shiba Inu pets through the community.
SHIB is an ERC-20 token and as such uses the Ethereum proof of work consensus algorithm to secure its network although the token is have to a large extent converted to Proof-of-Stake and is currently working towards having its own layer 2 solution to enable it operate like DAI blockchain.
The founder(s) of this project goes by the name Ryoshi and has remained anonymous till date just like Satoshi Nakamoto of Bitcoin. The token was launched in August 2020 as a competitor to DOGE under the meme coins category. SHIB however is believed to have an impressive scalability and speed after the launch of its layer 2 solution on Ethereum main-chain soon but for the meantime it offers moderate scalability, transaction speed and gas fees.
SHIB currently ranks #15 on coinmarketcap with Market capitalization of $13,222,364,114.27, 24hr trading volume of $1,279,846,485.36, Market dominance of 0.69%, circulating supply of 549,063,278,876,302 SHIB and total supply of 589,735,030,408,323 SHIB
SHIB Markets
SHIB is traded on its main DEX Shibaswap as well as several popular crypto platforms and exchanges including Uniswap, Coinbase, Binance, Huobi Global, Gate.io, Kraken, Bitfinex, Kucoin, FTX, Gemini, OKX, Poloniex, LBank and others.
Why are you bullish on this token today and how long do you think it can rise?
SHIB has been able to record an impressive run within just two years of it's launch in 2020 such that it now ranks among top 20 crypto coins on coinmarketcap and enjoys popularity in the crypto space. SHIB has been able to dominate the meme coins category and is currently closely competing with DOGE for most valued meme coin in the crypto industry. SHIB ecosystem is still under development with several positive projects and strategies being set in place which in turn will make the network even more attractive and valuable in the long run
SHIB was trading at around $0.000000000082 in early Sept 2020 after its launch but has been able record an all time high of $0.00008845 in October last year and is currently trading at $0.00002403, so we can see that this token has experience an awesome rise in value and with the price statistics so far we should be expecting further rises in the nearest future. Personally I believe this coin will hit $0.0001 mark this year.
We have a SHIB/USDT pair chart above with a 1hr time frame. From this chart we can observe that the market had a strong bullish trend followed by brief bearish before the bullish resumed and has continued recording higher highs with retracements. At the area of current price we can see that the EMAs are serving as dynamic support lines to the price which is a signal that the market is still bullish and we can also notice the high volume and volatility shown by the volume indicator below at this point which signals that the market is very active currently and trade volumes is high so we can be expecting a strong uptrend at this point.
Technical Analysis of SHIB and Trade Entry
For the technical analysis of this token I'll be using price action and a combination of 20 EMA, 50 EMA and Median indicators for confluence.
EMA is an abbreviation for Exponential Moving Average and is a very popular and effective technical indicator in the crypto market. This indicator calculates the average price of assets and identify trends, trend reversals, trend continuations and trade opportunities on charts, it is also very useful for price forecasting.
The combination of two EMAs with different periods is to help confirm trend signals and know when the price is on a bullish or bearish market easily.
EMA is relatively easy to understand and very effective in trending markets
Median Indicator on the other is an advanced technical tool which like it's name implies calculates price median at a given period of time and also signals when there is a high trading volume or low trading volume in the market via the clouds on both sides of the median line. The farther the clouds from each other the higher the trading volume of the asset. The Median line changes its colour to show change of direction of the price movement, the green line signals an uptrend while the purple line signals a downtrend
So we can use this combination with the market signals on the chart to confirm price movements and market signals effectively with lower risks and greater chances of profits
On the chart above I have set up the technical indicators and we can observe that the price is currently on a bullish trend with some retracements which is usual with bullish markets. The EMA has crossed below the price and is now serving as dynamic support lines to the price which is a good signal of a bullish market. The Median indicator also notifies us on the high trade volumes being recorded in the market as both clouds drift farther from each other. We can also observe that the median line is coloured green signalling a bullish trend as well.
So from our indicators and price action we have confirmed that this market is going bullish and its a good time for a Buy Trade entry
So I made my trade entry by buying a position at $0.00002420 with my stop loss at $0.00002350 and my Take profit at $0.00002540 thereby giving a Risk/Reward ratio of 1:2.
I'm using my Huobi Global account to make this trade entry
Having made my trade entry successfully I now await its execution
Your plan to keep it for a long time or when to sell it?
I plan to hold this position as long as the market continues with its long term bullish trend, even if there are strong retracements I'll still hold as long as the EMAs are giving positive signals of a bullish trend continuation afterwards. And I plan to sell off when I confirm a trend reversal and the price have successfully closed at least three bearish candle after breaking the support zone.
So how I'll hold largely depends on the market price movement.
Do you recommend everyone to buy? Give reasons for recommending or not recommending.
SHIB is recommended for short term and to some extent long term investors as well and it should be with funds you can let go of supposing there is a crash because as matter of fact this token remains a meme coin that is was used to criticise another meme coin and without a real project when it was launched. Moreover there is no one to hold accountable to this asset as it's founders remain anonymous.
So although it has been a success and reached high value between its launch and recent times there is still the need to be careful and reserved with investing in this asset for a very long time.
So I recommend investing in this coin and also being updated with the information around the token as an investor.
Conclusion
SHIB was introduced as a meme coin to DOGE which also a meme coin but has surprisingly been recording successes since inception till date. SHIB currently ranks among top 20 crypto coins on coinmarketcap and competes closely with DOGE as most valued meme coin in the crypto industry.
SHIB as ERC-20 token have converted to Proof-of-Stake to a large extent so far and is currently working on launching its layer 2 solution on Ethereum to improve scalability, speed and low costs. SHIB also has several projects ongoing and futuristic which all aims on enhancing its ecosystem.
It was a great time analysing and Trading with SHIB in this submission and I do appreciate it.
Cc: Professor @nane15