#USUALAnalysis The usual approach involves examining key metrics and trends. Here's an outline of typical coin analysis:
1. Fundamental Analysis
Project Overview:
What is the purpose of the coin/project?
Is there a clear use case or problem it solves?
Team:
Who are the developers and founders?
Do they have a credible background?
Whitepaper:
Does the whitepaper clearly outline the technology, goals, and roadmap?
Partnerships:
Any notable partnerships or collaborations?
Community Support:
Active user base and developer engagement.
2. Technical Analysis
Price Chart Patterns:
Identify trends (bullish/bearish), support/resistance levels, and key patterns like head and shoulders or cup and handle.
Indicators:
Moving Averages (MA, EMA)
Relative Strength Index (RSI)
MACD (Moving Average Convergence Divergence)
Volume Analysis:
Check for volume spikes and trends.
3. On-Chain Metrics
Network Activity:
Active addresses, transaction counts, and unique wallet holders.
Supply Metrics:
Circulating supply vs. max supply.
Inflation or deflation trends.
Staking and Rewards:
How does staking affect supply/demand?
Whale Activity:
Are large holders buying or selling?
4. Sentiment Analysis
Social Media:
Check for trends on platforms like Twitter, Reddit, and Telegram.
News and Announcements:
Recent partnerships, updates, or controversies.
5. Market Conditions
Liquidity:
Is the coin easy to buy/sell on major exchanges?
Correlation with Bitcoin:
How does the coin move relative to BTC?
Macro Trends:
Overall market sentiment (e.g., fear vs. greed index).