#ChristmasMarketAnalysis
Cryptocurrency analysis is the process of examining digital assets in order to make informed trading, investment, or holding decisions. It is roughly classified into two major types: fundamental and technical analysis.
Fundamental Analysis (FA): Focuses on evaluating the fundamental worth of a cryptocurrency by considering aspects such as:
Project Purpose and Utility: What problem does it solve? Does it have real-world applications? Team and Development: The development team's experience and credibility. Partnerships are collaborations between corporations or institutions. Adoption Rate: The number of users and transaction volumes.
The Key metrics: Market capitalization is calculated as price multiplied by circulating supply.
Volume is the total amount of trade activity that occurs during a certain time window. Total Value Locked (TVL) refers to funds that are locked in decentralized finance (DeFi) platforms. Network activity refers to the number of active addresses and transaction counts.
Technical Analysis (TA):
Focuses on historical price and volume data to forecast future movements using charts and indicators.
Tools and Indicators:
Candlestick Patterns – Analyze price trends (e.g., Doji, Hammer).
Moving Averages (MA) – Identify trends (e.g., SMA, EMA).