Earning from the growth of cryptocurrency is not a matter of luck, but a result of competent analysis and observations. To determine when an asset is ready for growth, professional traders use specific tools and signals. In this article, I will discuss 5 proven methods that will help you find opportunities before the market notices them.
1. Abnormally high trading volume
Trading volume is one of the most reliable indicators of market activity. When volume spikes, it may indicate that large players (so-called 'whales') have started accumulating the asset.
How to use this?
• Check the data on the exchange Binance or other platforms using the volume indicator.
• Compare current volumes with previous days. If volumes have increased, a trend may be starting.
Example:
In August 2023, trading volume $ARB increased by 150% in a day. This was accompanied by a price increase of 25% in the following days.
2. Activity on social media
Social media is an excellent tool for analyzing market sentiment. If you see a project starting to gain popularity, it may be a signal for growth.
Where to track?
• LunarCrush: Analysis of mentions and social signals of tokens.
• CoinMarketCap Trending: Tokens with high user interest.
Life hack:
Look for coins that are trending but have not yet reached peak discussions. This allows you to enter the project at an early stage.
3. Withdrawal of coins from exchanges
When large holders withdraw cryptocurrency from exchanges to cold wallets, it often indicates preparation to hold the asset. Such a decrease in supply on the exchange creates conditions for price growth.
How to track this?
• Use services like Whale Alert to see large transfers.
• Analyze token inflows/outflows from exchanges using CryptoQuant.
Example:
In October 2021, massive withdrawals $BTC from exchanges preceded its rise from $40,000 to $60,000 in a month.
4. Participation in Launchpad and Launchpool
New tokens often show significant growth after listing. Participation in Launchpad or Launchpool allows you to acquire coins before they hit the market.
Where to look?
• On Binance Launchpool you can stake $BNB or FDUSD to earn new tokens.
• Announcements of future tokens are published on CoinMarketCap or ICO Drops.
Example:
The Space ID (ID) token saw an increase of more than 100% after being listed on Binance in March 2023. Launchpad participants received tokens significantly below market price.
5. Technical indicators: RSI and MA
Technical analysis helps find entry and exit points from an asset. The two most popular indicators are:
• RSI (Relative Strength Index): A value below 30 indicates oversold conditions, which may be a good time to buy.
• Moving Averages (MA): If the short-term MA (e.g., 50) crosses the long-term MA (e.g., 200) from below, it is a bullish signal.
Example:
In July 2023, the RSI for ETH reached a level of 28, which coincided with the beginning of a 20% increase over the week.
Conclusion
To predict cryptocurrency growth, it is important to use a comprehensive approach: analyze volumes, social media activity, whale behavior, and technical signals. These tools will help you enter the market at an early stage and maximize your benefits.
If you want to test these methods, Binance provides all the necessary tools for analysis and trading.
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