Identifying real price goals in cryptographic trading

The cryptocurrency trading world is known for its high risk and variability. As prices are changing rapidly, it can be difficult to predict the future value of a particular coin or property. In order to make reasonable investment decisions, it is necessary to understand how to determine the real cryptographic prices of cryptographic trade.

Understanding the price movement

In cryptocurrency markets, prices lead to supply and demand force. When the high demand for a particular currency, its price usually rises and supply is abundant and its price may be reduced. However, this does not mean that the price will always increase indefinitely. Cryptographic traders need to understand the main market dynamics and to predict possible price repair.

Factors that influence goals

Several factors can affect the cost of cryptocurrency including:

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• A positive attitude can increase prices and negative moods can lead to corrections.

• Competitive environment : The presence of other coins or property with similar properties may affect the demand for a particular cryptocurrency.

• Regulatory Environment : Government Rules and Policy can have a major impact on the acceptance and cost of cryptocurrencies.

Identifying real price goals

In order to determine the realistic cryptographic goals, the following factors must be taken into account and the structured approach:

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• Specify market capital : Calculate the total value of all circulation coins to determine the main line of price changes.

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sample scenario: target price setting

Let’s consider the script in 2022. January We buy a specific cryptocurrency, an example. We have identified the following factors:

• Market trend: The market is usually stubborn and prices are rising over time.

• Coin characteristics: The cryptocurrency of our choice has a strong programming team and a growing consumer base.

• Market captain: At the beginning of the year, the total value of the currency of our choice amounted to about $ 100 million.

Assuming that we buy 10% of this market (which may not be realistic due to liquidity restrictions), we can estimate the target price:

• This includes the lowering of the lower bounds based on the potential loss and the upper limit based on potential profits.

2.

• Observe the market moods

  : We will strictly monitor the mood of the market to predict the possible price repair.

Target price calculation

We use our example scenario:

• Lower limit: 20% less than $ 100 million (i.e. $ 80 million) = $ 40 million. USD

• Top boundary: 15% exceeds $ 100 million (i.e.