The leading experts of the cryptocurrency market have explained the various strategies you can use to find emerging cryptocurrencies, including analyzing technical indicators, watching news and events, doing fundamental research, and more! So, how to find altcoins that will explode? Here are the details…
Experts explained 5 critical strategies for potential altcoins!
In the context of cryptocurrencies, the term “bull” refers to a positive sentiment or outlook regarding the future price or market trend of a particular cryptocurrency or the entire cryptocurrency market. A bull investor believes that the price of the cryptocurrency will increase in the future and therefore may consider buying or holding the cryptocurrency in question. The term is often used to describe a positive market sentiment and can be compared to the term “bearish”, which denotes a negative sentiment or outlook.
According to experts, the most commonly used approach to find emerging altcoins is to use a combination of different methods, such as technical and fundamental analysis, following news and influencers on social media, and assessing a crypto’s potential by market cap. So what are these strategies and methods?
Analyzing the potential of technical indicators by market cap
Technical analysis involves examining historical market data such as price and volume to identify patterns and trends. By looking at technical indicators such as moving averages, relative strength index (RSI) and stochastic oscillators, you can get an idea of current market sentiment and identify bullish coins.
- Relative Strength Index (RSI)
RSI is used to measure the strength of a crypto asset’s price action. The RSI is a momentum oscillator that compares the magnitude of recent gains with recent losses to identify overbought and oversold conditions. The RSI is calculated using a formula that takes into account the average gain and loss over a period of time (usually 14 days). When the RSI is above 70, it may signal that the crypto is overbought and needs a price correction or reversal, and investors may consider selling. Conversely, when the RSI is below 30, it may signal that the crypto is oversold and needs a price bounce or reversal, and investors may consider buying. In other words, a crypto with an RSI below 30 could be the next crypto to explode.
- Simple Moving Average (SMA)
The SMA is another widely used technical indicator that is calculated by taking the average price of a crypto asset over a certain period of time, such as 20, 50 or 200 days. The SMA is a lagging indicator, meaning it is based on historical price data and provides insight into the trend of the crypto over a period of time. When the price of a cryptocurrency is above its SMA, it is generally considered to be in an uptrend, while a price below its SMA can indicate a downtrend. In addition, it may indicate a reversal of the uptrend when the price rises above its SMA, and a reversal of the downtrend when it falls below its SMA.
To follow news and events regarding cryptocurrencies
Cryptocurrencies are affected by news and events such as new partnerships, regulatory changes and important announcements. Keeping up with the latest news and events can help identify potentially bullish cryptos.
Looking at the market value of the project
Market cap refers to the total value of a cryptocurrency. Cryptocurrencies with a high market cap are generally considered to be more stable and have a higher chance of rising in the long run. However, a high market cap also means that sudden and large bullish moves are less likely. For example, a $10 million project with a market cap is much easier to double in value than a $1 billion project.
Following the famous names of the crypto money world
Following influencers for altcoins, such as developers and famous investors, can give you valuable insights into which cryptocurrencies may be bullish based on the latest developments. It’s also a good idea to follow the social media channels of projects you might be interested in, as these channels often include roadmap goals, upcoming events and goals, and more. This can give you plenty of insight into how well the project might perform in the future. Tesla CEO Elon Musk can be given as an example of these names. As you know, Musk appeared as a big part of DOGE’s rise last year.
Performing fundamental analysis
Fundamental analysis; It includes evaluating the key factors that determine its value for altcoins, such as its technology, team, and adoption rate. By doing fundamental analysis, you can identify potential bullish coins based on their long-term prospects. It’s worth noting that fundamental analysis may not be as important for smaller market cap currencies as they are often subject to market trends generated by the largest cryptocurrency projects. As reported by Kriptokoin.com, these 5 strategies by experts can be beneficial to investors.