REPOST: [XMR/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 Monero cryptocurrency
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 I'll be analysing and Trading with a special cryptocurrency called Monero (XMR).
Monero (XMR) is the native token of Monero blockchain network. This blockchain is very popular in the crypto space among Privacy oriented cryptocurrencies, infact XMR ranks #1 among Privacy Coins.
Monero is a privacy oriented open source blockchain network that was built with special focus on maintaining anonymity of users and censorship-resistance.
We all know the traditional blockchains to be very transparent in such a way that everyone can explore the blockchain and view transaction information as well as addresses involved in transactions but there are also many cryptocurrency users that don't like the idea of having their addresses and transaction information public and accessible to everyone and hence the development of privacy blockchains like monero. So Monero blockchain is developed in such a way that addresses and transaction information are made anonymous so that you cannot know the sender or recipient by just exploring the blockchain.
Monero used the Random X PoW consensus protocol and this protocol helps to stop ASIC mining tools from dominating the hashrate hence every investor has an equal chance at mining since it does not require expensive mining tools but simple PCs. It is also believed that the developers of Monero did not keep any coins for themselves during the launch although they used the support of the community to ensure a smooth launch and continual development of the blockchain.
Monero was founded by anonymous person or group called Nicolas van Saberhagen. This character remains anonymous till date just like the founder of Bitcoin. The initial release was on April 2014 and the development has remained actively being managed by the Monero development team.
Monero offers a fair scalability and block creation time of 2min.
While monero enjoys a lot of patronage and huge market because of the privacy and anonymity it offers to users, it also suffers distrust and suspicion especially from anti-criminal agencies because it is believed to be the dark market of many criminal organisations, drug kingpins and other illicit groups for money laundering and other financial crimes because its censorship-resistance so it basically impossible to track anyone on Monero.
Monero ranks #43 on coinmarketcap and is currently trading at $155.00 with Market capitalization of $2,803,198,870.65, 24hr trading volume of $120,423,175.97, Market dominance of 0.16%, circulating supply of 18,085,716 XMR and total supply of 18,085,716 XMR. We can see that the circulating supply is same as total supply.
XMR Markets
Monero is available in almost all popular crypto exchanges including Binance, Huobi Global, Coinbase, Kraken, Gate.io, Kucoin, Bitfinex, Poloniex, OKEx etc and is available in several pairs.
Why you are optimistic about this token today, and how long do you u wish it can rise.
Like I mentioned before monero is a cryptocurrency with something special which includes its privacy, anonymity and censorship-resistance resistance and these make it to have a strong market always because majority of businesses that require huge money transfers via cryptocurrency will opt for a privacy coin like monero especially investors that needs security from censorship and prying eyes. Surprisingly this coin once traded for as low as $0.2 in 2015 but today is between 100 and 200 dollars although the market is actually on a long term bearish for sometime now. So it's even likely to pump in coming weeks and months.
Also if we look at the XMR/USDT chart above with a 4hr timeframe we can see that the market is just recovering from a bearish and has already shown signs of a strong trend reversal to bullish. We can see the crossover by the EMAs after which the trend reversal began and we can also see an indecisive candle which I market, this candle is then followed by a strong bullish candle which is also signal that the bullish trend will continue for sometime although we can't tell how long for now. So this coin had just started an uptrend and it is advisable to buy now.
Technical Analysis of XMR using the knowledge gained from Crypto Academy
I will be using three technical indicators for this analysis including EMA and Relative Strength Index (RSI) indicators.
The Exponential Moving Average (EMA) is used to calculate the average price of the asset within a given period of time, to identify good trade opportunities and to forecast possible price movements while the RSI indicator just like the name implies is a technical indicator used for calculating the Relative strength of prices in a period of time.
The RSI also show when the asset is overbought or oversold, in case of the former we should then be expecting a downtrend to follow while in case of the later we will be expecting an uptrend. So this helps us observe the trading activities going on in the market and the general market psychology of the asset.
I can now enter the XMR/USDT pair chart to arrange my technical tools and analyse for trade
From the XMR/USDT chart above with a 4hr timeframe we can can easily observe the market structure. The market started with a bullish which became exhausted and moved sideways for sometime indicating the matching numbers of buyers and sellers after which the market turned fully bearish showing that the number of sellers is now higher than that of buyers. But then towards the end of the movement we can observe a trend reversal which is likely the beginning of another bullish trend.
We can observe that there is a short indecisive candle which is then followed by a strong bullish candle signalling that the market has just turned bullish.
The 9 EMA crossed the the 20 EMA showing a trend reversal and both EMAs are now moving under the price forming a dynamic support and this is also a strong signal of bullish trend.
The signals from the EMAs is also confirmed by our RSI indicator below as the first line crosses above the second line and the price is also showing a strong bullish. We can also observe that the RSI is moving in the direction of the overbought zone but is there yet so we can say the number of buyers are still more than that of sellers and it will take some time for the asset to get to that zone so we're very safe on this entry.
From our chart, price action and technical indicators we are sure that the market has turned bullish and of course this is the best time to buy.
I plan on buying, holding for a short time before selling in order to make profits, so my target will be to sell when the price hits 180 and above.
I can now make my trade entry for a Buy trade with stop loss and Take profit at a ratio of 1:2.
I'll be using my Huobi Global Account to execute this trade entry.
We can see the trade order has been made already and now awaiting execution
Your plan to hold it for a long time or when to sell.
I plan on holding the asset for a short time period, infact my target in this trade is to sell off when it hits $180 but if the bullish continues then I'll buy again repeating same process
But generally it is actually is good idea to buy and hold for a long time because XMR is like to go over $200 and more in coming weeks or months
Do you recommend everyone to buy this token? Give reasons for your answer.
Yes, I definitely recommend anyone interested in investing in cryptocurrency to go for Monero because like we saw earlier, Monero is very successful project and well respected in the crypto market especially among many investors and traders that are anonymous. So there is a strong market behind this project such that it is almost impossible for it to loose value to extent that it becomes a failed project.
The best recommendations will go to those using the HODL idea. If you intend to hold the asset for a long time then monero is good option for you as it is expected to pump far beyond what we have now in few years time due to it's growing market and influence in many crypto markets.
Conclusion
Monero is a privacy oriented cryptocurrency and is actually the most popular and top-rated privacy coin in the crypto market. The mining structure of the blockchain is such that every has equal opportunity to earn from mining and the total supply of this coin is already in circulation.
Monero also has fair block creation speed of 2min and strong security. The privacy protocol of the blockchain makes every transaction and address anonymous making is an opaque blockchain that cannot be censored or tracked by anyone.
Monero is a successful project and has a strong market which keeps it valuable.
It was a great time analysing and Trading with this assignment, I really do appreciate the opportunity to do this here.
Cc: Professor @reminiscence01, @nane15