How do you know when crypto prices are going to rise? Discover how to predict crypto prices with technical analysis and on-chain insights.
Crypto is a different “wild” animal altogether.
While it might share some features like the Forex market, for example, tokens like MKR or CAKE are too volatile.
Rule #1: Crypto Is Volatile and Hard to Predict
Technically, the more liquid a trading instrument is, the less volatile it is, and this is true.
Bitcoin has a total market cap exceeding $1.1 trillion.
(Source)
Ethereum follows in second position, but there are millions of other altcoins.
Most of these altcoins are less liquid and, therefore, extremely volatile. It worsens if they are not listed in top centralized exchanges like Bybit or Binance.
Like every asset class, traders try to clip market volatility for profit. The problem is that no one knows the future, which can get murky quickly.
There are various models to predict where prices of top coins like Bitcoin, PEPE, or even Pepe Unchained can be in the next few hours or months.
How To Predict When Crypto Prices Are Going to Rise?
While there are options, what’s needed to grasp crypto market volatility is to have a clear understanding of the underlying market dynamics.
There is no perfect model; nothing is ever foolproof.
However, a trader must employ effective analysis techniques to improve decision-making, including roping in indicators.
Common analysis techniques include:
- Technical analysis: This is nothing more than relying on the past–believing that market history will repeat itself. The trader will analyze historical data, including prices and trading volume. Then, using technical indicators, traders can easily identify patterns and, from here, be in a better position to predict price movements.
- Fundamental analysis: This approach aims to assess the intrinsic value of a crypto asset. Analysts will comb through market data like headline inflation and labor market conditions and then compare it to the project development and the roadmap. This model seeks to determine whether the asset in question is undervalued or overvalued at any point in time.
- Sentimental Analysis: Crypto is a new asset class. And unlike stocks and the currency market, there is an element of sentiment and hype. Sentimental analysts will analyze prevailing sentiment, looking at news articles and social media discussions to identify opportunities. Here, traders can easily pick out the current trend, knowing at any point whether there is panic selling or FOMO.
Using the above, a trader can analyze any crypto asset effectively. Bitcoin and Ethereum are case in point.
From technical analysis, both of these assets are bullish. Moreover, considering the state of the economy, fundamental analysts are confident of what lies ahead. However, sentimental traders are angling for short positions because prices have been struggling to print higher highs in recent days.
DISCOVER: How to Trade Bitcoin for Beginners – Updated 2024 Guide
Pepe Unchained: Is This The Perfect “Gem”?
Zooming out to other top altcoins, mostly Pepe Unchained, it is easy to see what fundamental and sentimental factors align perfectly.
Pepe Unchained is in the final phase of its presale and has raised over $11.7 million.
Each PEPU is trading for $0.0094603. The project is inspired by Pepe, a popular meme coin–a massive plus for sentimental traders.
At the same time, Pepe Unchained developers are looking to boost Ethereum scalability by building a layer-2 scaling solution but for meme coins.
Fundamentally, this is massive. Other layer-2 projects like Base and Arbitrum have been successful as users search for cheap, scalable, but secure alternatives while tapping into Ethereum’s security.
Pepe Unchained, once live, will also be interoperable with the Pepe Chain.
Beyond this, PEPU, the native token, features strong tokenomics that are all expertly designed for long-term sustainability and growth.
On launch, PEPU can fly, rewarding early adopters.
Meanwhile, holders can stake, earning a high yield of over 175%.
EXPLORE: The Most Profitable Upcoming Crypto Presales of 2024
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
