How to analyze whether a crypto that is down is going to rise (in a simple way):

1. Evaluate the price history

Check the behavior of the crypto in previous downturns. Has there been a recovery? Analyze the price chart to identify whether it is common for it to go through corrections before rising again.

2. Check the recent news and announcements

Major events, such as partnerships, network updates or listings on major exchanges, can be signs of future appreciation.

3. Observe the trading volume

An increase in purchase volume, even at a low price, can indicate that investors are accumulating, expecting a future appreciation.

4. Understand the project behind the crypto

Cryptocurrencies with solid fundamentals, such as good technology or real utility, tend to recover better than those without a clear purpose.

5. Compare it to the general market

If the entire crypto market is down, but your coin shows signs of strength (or is in line with the market), this can indicate a future recovery.

6. Follow the whales

Analyze the movements of large portfolios. If whales are buying during the dip, it is a sign that they believe in the appreciation.

Bonus tip:

Use simple tools, such as the RSI (Relative Strength Index) chart. It helps identify whether a coin is oversold (too cheap) or overbought (expensive). If it is oversold, there is a chance of an increase.

Remember:

Analysis is probabilities, not guarantees. Diversify your investments and avoid betting everything on a single crypto.

Below are my predictions for this week