SOL/USDT BUY]-Steemit Crypto Academy | S6W1 | Team Trading Contest Post for Crypto-Empires
Hello Everyone,
Solana is an open source high performance project which is implementing a permission less blockchain to provide solutions to DeFi. The project was started in 2017 which was then later launched in March 2020 in Geneva, Switzerland.
The whole project main aim is to help enhance the designing of Decentralized Apps and to make decentralized finance more accessible to a number of large scale. It uses Proof-of-history consensus and proof-of-stake consensus to improve its scalability. Due to the use of both consensus model, it attracts both small traders and institutional traders.
Anatoly Yakovenko is the master mind of the project who then later team up with his colleague Greg Fitzgerald. As time goes by more of their colleagues joined in the process. Initially, they founded a project called Solana Labs.
One of the unique thing the Solana token brought to the system is the proof-of history consensus which turns to bring a greater scalability of the protocol and boosts usability. It was developed by the main founder Anatoly Yakovenko. it has a low transaction fees and still guarantees scalability and fast processing of transactions.
Solana is ranked at #8 on CoinMarketCap with a current price of $90.67. It has a trading volume of $2,603,340,029 USD and market cap $29,006,777,598 USD of for the past 24 hours. The Solana token has a circulating supply of 319,929,011 SOL. Solana trading volume is down 31.99% for the past 24 hours.
Solana can be traded in most of the exchanges with alot of pairs trading can use. Some of the few exchanges it can be traded on are Binance, Huobi Global, Kucoin and a lot more.
Through this analysis I will be using 3 indicators which are Ichimoku cloud, RSI indicator and the exponential moving average. I combined both the RSI indicator and the exponential moving average first to read the chart.
I placed two moving averages onto the chart, one with 20 period and the other with 50 period. We can observe that the 20 period crossed above the 50 period indicating that we should be expecting a bullish trend. In addition, the 20 period serves as the support level to the price. We can see the moving average rejecting the price into bullish.
Looking into the RSI Indicator, its currently at the 60 mark which means we should be expecting a bullish trend till it get into the overbought region before it makes a reversal in bearish. Sometimes this gives a false signal, that's the reason I'm using other indicators to filter out the false signal.
With the Ichimoku cloud, being below the price serves as the support for the price movement. It also tells us the momentum and currently it signals they is a buying pressure in the market by the expansion of the cloud. I had to remove the RSI indicator because I'm not allowed more than 3 indicator on the chart.
All these indicators has given me a buy signal so i will go ahead and get into the market. I used the SOLUSDT to make my entry at the price of $94.05 with $13.16 worth of 0.14 SOL.
In the last couple of days, the price has been in a range trend and should have enough momentum to break the resistance into bullish. From my technical analysis above, the Ichimoku indicator is a momentum base indicator which gave us a positive signal that there are a lot of buying pressure in the market. All the other indicators gave us possitive signals as well, so there is no reason to resist.
Solana use of PoS and PoH which attracts small and enterprise traders is advantage to hold this token for a long time period. And also its promise to keep its transaction fees low is an advantage to gain more traders to get hold and use of this token.
At the time of writing this post, the price have gone in bearish from my entry point, sometimes the signal from the indicators doesn't act instantly and take some time which require patient and avoiding panic exit.
I see the price surpassing $100 per 1SOL.
My plan is to hold for about a week. Currently the price is not being to my advantage and i need to wait for a bit while i still read the charts to see different signals.
Yes I would 100% recommend traders to buy but before that, you need to consider your trading style with the type of token SOL is before. So the first thing to do before taking my recommendation is to do your own research, if it fits then you go ahead.
My trade for the day, see you next week for more day trades...