[XRP/USDT - Future] - Crypto Academy / S6T2- Team Trading Contest Post for Reminane

Hello Steemians..... It's another week of trading contest and I'm very glad to be participating in this trading contest because it is a medium to test our knowledge of all the lectures we've been taught. I am team @reminiscence01.
In this post I showed my knowledge of trading and I traded the XRP/USDT pair.

The name and introduction of the project token, which exchanges it can be traded on, project / technical information of the coin/ team background, etc.

Source

The Ripple cryptocurrency also know as XPR is the governance token of the Ripple network. Ripple is a blockchain-based digital network which uses consensus mechanism to confirm digital transactions.

The Ripple platform is a peer-to-peer open-source platform that is decentralized in nature which is used for ease conversation of different currencies and also for effortless transfer of currencies.

Ripple is therefore a technology that serve as both a digital paying network and a cryptocurrency. It was launched first in in 2004 by Ryan Fugger and later in the year 2012, Chris Larsen and Jed McCaleb took charge of the network.

The XRP token was launched with twenty billion to its co-founders and eighty billion tokens going to the company. The main purpose of the Ripple platform was to serve as a middleman (intermediate mechanism) between two currencies, persons or platforms. The Ripple platform is a global payment platform that is also used by banks and other financial institutions.

In the process of transaction validation, the Ripple network uses a distinct consensus mechanism protocol, whereby the originality of a transaction is verified using nodes by conducting a poll. This consensus used by the Ripple network helps to improve the integrity of the platform.
Transaction verification process in the Ripple ecosystem is fast and reliable due to the fact that the platform is not controlled by any authority as it is decentralized in nature.

Gateway is the medium used by the Ripple network as trust-chain to link two parties who wants to make transactions. The gateway can be referred to as the intermediary that receives and transfers funds to different public addresses.

Why you are optimistic about this token today, and how long do you u wish it can rise.

Firstly I am optimistic about the Ripple token because the XRP network is a decentralized system which makes it very reliable and fast.

Secondly, considering the overview of price data history of XRP, it was trading at about $0.005 per token at first when it was launched. Then in April 2017 the price of XRP rose to $0.40 but the price later settled at $0.27 after some months. In December the same year, the price moved from $0.27 to $0.51 and in the next two weeks, XRP was trading for $1. The year 2017 rounded up with the price of XRP trading at $2.30. This showed an incredible growth of the token comparing to the price it was trading when launched.

The price of XRP dropped to $1 in February 2018 and presently in 2022 the price of XRP is $0.78 and this is due to the fact that financial market is volatile meaning that prices of assets are not constant, they'll always rise and fall. Not withstanding the rising and falling of the XRP price, the token has risen greatly above it's price when it was launched.

Thirdly, I'm optimistic about XRP because the XRP is a coin aimed at financial institutions, meaning that traders who invest in the token will have a good shot.

Fourthly, I'm optimistic about the XRP token because the token us ranked 6th in CoinMarketCap.com which implies that the token is one of the widely known token with great growth potentials.

Statistics of XRP/USDT pair CoinMarketCap.com

On the day of this research, 1st of March 2022, the price of XRP was $0.7844 with a market capitalization of $37,612,161,638 and a 24 hours trading volume of $3,022,621,158.

How to analyze the token? (This can technical analysis and trading strategies learned from professor's courses) - This section is very important.

XRP/USDT TRADE ANALYSIS

The Technical analysis of the XRP/USDT was analysed on Tradingview and the trade was executed on Binance exchange precisely the margin trading is also known as Futures. Well, I received my buy signal with the aid of EMAs (20 &50) and Price action methods. First, let me analyse my strategy. The following was my point of interest.

XRP/USDT Pair from TradingView

• The price was in an uptrend before a low term down move. Later, the market regained some strength as the buyers are still in control of the market.

• Also, the price breaks above the EMAs which indicates an upward movement. Meaning the EMAs agrees with the price action.

• Then, I identified a support level where the market will respect and bounce upward. At thag point I find a buy entry using the Order blocks. That's the close of the red candle before the series move of the green candle which was entry around $0.7152.

• I placed my Take Profit (TP) around $0.7517 and my Stop-Loss (SL) around $0.7033 should in case the trade backfire me.

Placing of the trade was executed on the Binance exchange platform precisely using the margin trade (Futures) with a Leverage of 5×.

My trade history from my Binance account

The above screenshot shows the transaction details. Unfortunately, the trade backfires me. That's the trade that hits my SL though the SL made me not lose much of the funds. Well, I give thanks to all the Professors here in steem for the knowledge regarding entry and Exit.

Remember, I'm still a learner and I need more idea to make a better trade. Honestly, you reading I would like you to teach me your strategy. Also, if you notice any error do well and drop a correction message. I mean you reading this post.

Your plan to hold it for a long time or when to sell.

Depending the fact that I placed my trade based on short-term trading strategy, I'll exit the market once my placed trade hit either my take profit or stop loss target.
Due to the above mentioned I won't be holding the token for a long time.

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.

From the statistics overview of XRP token above in, we can notice that the token is still in it's growing stage and the fact that the token is ranked 6th in CoinMarketCap also shows that the token has great growth potential.

I'll recommend therefore that, long-term traders with plans of holding the token for a long time should go ahead and buy the token because of it's strong foundation.

For short-term traders I'll recommend they carry out proper technical analysis before entering into the market, reason been that the financial markets is very volatile as prices of assets are never constant. And also before entering the market short-term traders should also try to manage trading risk by setting stop loss and take profit.

Thanks @reminiscence01 for the great opportunity for me to be able to practicalize my trading knowledge.
Thanks for reading through my post.

Cc:-
@reminiscence01
@nane15