The Good Tech Companies - Educational Byte: Fundamental & Technical Analysis of Crypto Markets

Episode Date: May 26, 2024

This story was originally published on HackerNoon at: https://hackernoon.com/educational-byte-fundamental-and-technical-analysis-of-crypto-markets. We can use fundamental and technical analyses to understand how crypto markets work, and their potential price in the future. Let’s see more of it! Check more stories related to web3 at: https://hackernoon.com/c/web3. You can also check exclusive content about #cryptocurrency-investment, #crypto-market-analysis, #fundamental-analysis, #technical-analysis, #obyte, #cryptocurrency-trading, #good-company, #crypto-market-trends, and more. This story was written by: @obyte. Learn more about this writer by checking @obyte's about page, and for more stories, please visit hackernoon.com. Markets and prices are just the tip of the iceberg in cryptocurrencies, and not the main reason for them to exist. However, they could be important as well for investors and crypto enthusiasts interested in their favorite coin's well-being for any reason. That’s why they’re thoroughly analyzed by many people every day, and there are two main ways in which they do it.

This audio is presented by Hacker Noon, where anyone can learn anything about any technology. Educational Byte. Fundamental and technical analysis of crypto markets, by Obite. Markets and prices are just the tip of the iceberg in cryptocurrencies, and not the main reason for them to exist. However, they could be important as well for investors and crypto enthusiasts interested in their favorite coins' well-being for any reason. That's why they're thoroughly analyzed by many people every day, and there are two main ways in which they do it—fundamental and technical analyses. It's important to note that none of these techniques

is a way to know for sure about the future, even if price forecasts are common among many traders. They barely work to understand the present, often based on the past behavior of the asset being analyzed, but aren't a bulletproof way to navigate the complex and volatile cryptocurrency markets, only because that bulletproof way doesn't exist at all. Taking that into account, we still can use fundamental and technical analyses to understand how crypto markets work and their potential price movements into the future. Let's see more of it. What is fundamental analysis? This is a set of methods that lets users and investors determine, more or less, the intrinsic

value of a certain coin. The intrinsic value itself is a subjective concept, but we can say it refers to the perceived true worth of an asset based on its native characteristics and underlying factors, rather than its market price. For instance, we could wonder about the real utility and or legitimacy of a certain coin, instead of looking at its price chart. Besides, fundamental analysis in the crypto realm encompasses unique elements tailored to the decentralized nature of these assets. For this analysis, we can check a cryptocurrency's whitepaper, scrutinizing its technological innovation, scalability, and real-world applications. This also includes the expertise and track record of the project's team, or if it's anonymous, which could be crucial for gauging the likelihood of successful execution.

N-tokenomics study plays a pivotal role as well, examining factors like total supply, circulation, and utility within the project's ecosystem. This evaluation could help forecast a token's long-term value, considering aspects such ASS Car City and its role in transactions and governance. More factors to research in the fundamental analysis are partnerships and collaborations with established entities, general social sentiment and community support, regulatory landscape, news and announcements, and security assessment to establish the level of network robustness, general social sentiment and community support, regulatory landscape, news and announcements, and security assessment to establish the level of network robustness, consensus mechanisms, and resilience against potential threats. Together, all this data can give us a more solid idea about the potential value or future success of the analyzed ecosystem.

What is technical analysis? While fundamental analysis examines external factors influencing the market, anticipating that the market will eventually mirror these factors, technical analysis centers on the market's internal dynamics, asserting that historical patterns can, to some extent, predict future market behavior. Also, it often involves more quantitative than qualitative features. In a technical analysis, one must study past market data, primarily price and volume, to forecast future price movements and identify trading opportunities. This analysis relies on charts, patterns, and statistical pointers to measure market sentiment and trends. By examining historical price action and patterns, technical analysts aim to predict

potential price movements and make informed trading decisions. Technical analysis doesn't consider the intrinsic value of an asset, focusing instead on price movements and market psychology, often for the short-term instead of the long-term. It's widely used by traders in the cryptocurrency market to identify entry and exit points for trades and to manage risk. And some indicators used in this type of analysis include candlestick patterns, visual representations of price movements, and chart analysis to detect trends and reversals, while also relying on support and resistance levels of the price to forecast future value movements. Additionally, RSI, Relative Strength Index, MACD, Moving Average Convergence Divergence, and Bollinger Bands are

tools used by professional traders to understand market trends and potential entry or exit points. Moving Averages smooth out price data over a specified period, helping to identify trends. RSI measures the speed and change of price movements toted or min if an asset is overbought or oversold. MACD combines two moving averages to show changes in momentum. Meanwhile, Bollinger Bands use volatility to gauge the range of price movement and identify potential breakouts or eversells. There are more techniques to study and use in technical analysis, but we can sum them up into one thing. Playing with the numbers in a price chart and trying to discover statistical patterns and make predictions. Fundamental and technical analyses in Obite. To apply these

research methods in Obite, one could begin by reviewing Obite's white paper and official website to understand its underlying technology, including its unique features such as directed acyclic graph, DAG, architecture, tokenomics, and smart contract capabilities. Evaluating the team behind Obite, which isn't anonymous, could also add to the investigation. And more elements to consider would be adoption and use cases, utility and decentralized applications, DApps, and partnerships and announcements. On the other hand, a technical analysis of Obite would involve studying the price movements and market data of GBYTE, the main asset of this platform, to identify short-term trading opportunities. Traders would analyze Obite's price charts on platforms like CoinMarketCap or CoinGecko to

identify volume, patterns, trends, and key support and resistance levels. Overall, both approaches play vital roles in evaluating Obite and other cryptocurrencies. Fundamental analysis provides insights into a project's intrinsic value, technology, team, and market adoption, guiding long-term investment decisions. Meanwhile, technical analysis helps traders navigate short-term price movements and market sentiment. By combining them, investors can gain a comprehensive understanding of their preferred assets' potential and make well-informed decisions in the dynamic crypto market. Info featured vector image by Freepik.

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