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SOLANA: The end of an era or not?Hello everyone! This is our second idea in a fundamental project analysis (the first one about Aptos is right here ). This idea will tell you about the Solana project in terms of product, competitive advantages, team, tokenomics, and prospects. If you understand the project from all angles, including its essence and goals, as well as the fundamental approach and metrics, you will be able to enter the project more consciously and profitably. THE PROJECT and IT'S TOKEN Solana - SOL token What is the project? Layer 1 blockchain based on the Proof-of-Stake (PoS) and Proof-of-History (PoH) consensus systems. The project was founded in 2017 and was officially launched in 2020. PRODUCT PART Key mechanics The Proof-of-History algorithm is designed to synchronize the blockchain and transactions. The higher the throughput, the faster the blockchain synchronization rate. PoH is a method for reducing time costs, not a consensus algorithm. Tower Byzantine Fault Tolerance (TBFT) is a consensus algorithm that is based on Proof-of-Stake that uses PoH to reduce computational resources and time costs. Turbine is a transaction transfer protocol that shortens the time it takes to transfer data between validators.. Gulf Stream is a transaction transfer protocol that does not use mem-pools because validators are detected in advance. Sealevel is a parallel execution of transactions and signature verification. Strengths High throughput due to a combination of PoH and TBFT, as well as the Gulf Stream and Sealevel. High scalability due to Turbine Weaknesses When there is a high load on the Solana network, the blockchain stops processing transactions and becomes inactive due to a lack of mem-pool. For example, when a large number of mint bots were launched, which sent transactions to the blockchain very quickly, the network was unable to handle transaction processing and went into an inactive state. Not a reliable level of decentralization – the nodes vote for the block and pass the votes on to the leaders. Leaders collect votes and sign the block themselves. The issue is that in other networks, validators (leaders) validate blocks, and then nodes decide whether or not they agree with the validator's action. BUSINESS PART How does the product make money? The situation is comparable to Aptos and other blockchains. Investing in projects from their ecosystem and the most promising projects from other ecosystems are currently the main sources of income for Layer 1 blockchains, aside from collecting investments. How can a product make money in the long run? Selling your infrastructure to third-party companies like web2 or TradFi is the best way to make money with blockchain. However, at the moment, there are several limitations to this: 1. Unreliable technical solutions Solana has proven that it can stop its work at any moment. 2. Weak regulation Because there is no clear regulation, any company that decides to integrate into blockchain must accept the risk of pressure from their country's regulators. 3. Lack of business logic It's still unclear why large corporations should use blockchain infrastructure and what benefits this solution will provide. TEAM Anatoly Yakovenko – Co-founder, ex Dropbox, Mesosphere, Qualcomm Raj Gokal – Co-founder, ex Omada Health, General Catalyst Partners FUNDS AND INVESTORS Solana has had 9 rounds of investments, total fees ~315m USD The main investors: Tor Kenz Capital Buck Stash Collab + Currency Alameda Research Memetic Capital Blockchange Ventures CoinFund Genesis One Capital Multicoin Capital CoinShares TOKENOMICS 1. Total number of tokens: SOL deflationary token, unlimited maximum number 2. Current circulation: 363,963,170 SOL 3. Current market capitalization: 5.1b USD All member groups will receive their tokens in the first half of 2023, and token issuance will be limited to Staking Rewards. On the one hand, this is a good thing because SOL will become a fully marketable asset whose value is determined solely by supply and demand, and the issuance will only benefit network contributors. On the other hand, it is bad because Solana has currently lost the DeFi niche due to the network's poor performance and NFT due to the extremely low value of the SOL token. If Solana as a blockchain does not find its niche and users, the SOL token will not have a sufficient level of demand; additionally, the amount of SOL supply will increase every year due to the growing issue of Staking Rewards. CONCLUSION What to expect in the future? Solana, as a project, is basically finished. In 2020-2021, it was an advanced blockchain on which innovative products were released. Solana had the backing of Alameda and FTX, preventing the SOL token from falling below $3 in 2021. Solana experienced an NFT-boom in the fall of 2021, when the token price reached over $100, and many users became wealthy (or very rich as a result of Solana). However, in November 2021, the crypto-winter began, affecting all market assets. However, the crypto-winter began in November 2021, affecting all market assets. This year, SOL lost more than 90% of its value, lost many NFT users (no one wants to earn $20-30 and spend many hours of time grinding), lost the DeFi sector (users don't want to wait for Solana network to work and process transactions again, developers find more profit to run their application on L2 EVM network), and lost the support of their main sponsors – Alameda and SBF (these guys have enough problems right now). Along with the death of the previous cycle's market narratives, one of the cycle's brightest projects is likely to have died as well. Solana and the SOL token have two chances to recover their positions: 1. To attract new investors and real-world businesses that will use Solana's infrastructure. It is unlikely because Solana has already demonstrated weaknesses in their solutions, and it is unclear whether they can address those weaknesses. Furthermore, there are more advanced and promising solutions on the market (Aptos (here is a link to our article about Aptos on TV), SUI, Starknet, Scroll, Shardeum), investment and use of which will yield greater long-term benefits. 2. To develop or attract new projects and audiences. It is also unlikely because EVM networks are more likely to be chosen by developers and users due to their larger user base, network activity, and potential. Our output: long or short In the short run, SOL token will follow the market, but will rise slower and fall faster than others. In the long run, Solana resources are limited, the market is becoming increasingly competitive, and Solana and SOL are no longer of product and business interest. The project has run its course; SOL will most likely be among the top 50/100 projects in terms of capitalization, but Solana's golden days are over. P.S In any case, your trading strategy, investment and trading planning horizon are significant to make decisions and these decisions are up to you! Don't forget about risk management; the market is volatile, and you must successfully arrive at the right long-term forecasts without losing all of your capital. Keep in mind that many participants in the crypto market undervalue or overvalue projects and assets, and the true evaluation occurs only after the appropriate events occur. Thank you for reading! Feel free to share your thoughts about SOL in comments
by Samura0x
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DOT / USDT 1D CHART - Resistance and SupportHello everyone, I invite you to review the DOTUSDT 1-day chart. It is worth starting by marking with the yellow lines of the downtrend triangle in which we have been moving for over a year, but we are approaching the direction of the price. However, locally, as we can see, the price is below the downtrend line. Now, using the Fib Retracement tool, we will check where we currently have support for the price and here we have the first support at the price of $ 5, from which the price has already rebounded three times, but if the support is broken, we have another support at the price of $ 4.55 and $ 3.82. Looking the other way, we will set the DOT resistance points in the same way and here we have the first resistance at the price of $5.57, the second at the price of $5.92, the third at the price of $6.21 and the fourth at the price of $6.50. On the CHOP index, we see quite a lot of energy, the MACD indicator indicates the entry into a downtrend, while on the RSI we are below half, there is still room for a larger correction.
by cryptodailyuk
Daily review of BTC interval 4HHello everyone, let's look at the BTC to USDT chart on a 4-hour timeframe. As you can see, the price has been moving in the uptrend channel for a long time, which we marked with white lines, it is also worth noting that we have now rebounded for the third time perfectly from the lower border of our channel. Let's start with setting the support and as you can see in the current situation zena stopped perfectly at the beginning of the first support zone which lasts from $16677 to $16459. However, if the price breaks downwards from the current ascending channel and starts to fall, we can see a drop to the second support zone from $16223 to $15893. Now let's move on to the resistance that we should take into account when the price starts moving along our current channel and in this situation we see that the first resistance zone that the price is currently fighting is from $16846 and continues to $17158, the next resistance is at priced at $17,630 and $18,211. Looking at the CHOP indicator, we see that in the 4-hour interval, most of the energy has been used, the MACD indicator indicates a local downtrend, and the RSI is at a fairly low level, from which the price usually started to rise.
by cryptodailyuk
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APTOS: Long or Short? Hello everyone, we are a new derivative exchange Sunflower Corporation. Our aim is to bring value to traders and make trading process more conscious. We would like to explain and demonstrate the project in terms of the product, its competitive advantages, the team, tokenomics, and prospects. You’ll gain a better understanding of the essence and content of what you are trading, and you’ll look at the token from a different angle, from the fundamental approach and metrics, which will allow you to enter the project more consciously and profitably. So the first project we would to tell you about is APTOS - APT token What is the project? Layer 1 blockchain running on the Proof-of-Stake consensus system. It is based on the Move language. Blockchain Aptos is powered by its own blockchain. Diem was the project's original name, and was developed entirely within Meta (ex. Facebook ). Diem was created in 2019 by the team in charge of developing blockchain technology within what was then Facebook . Diem-Aptos was tested in closed mode from 2019 to spring 2022. The open test phase began in the spring 2022, and in October 2022, the APT token was released, and the blockchain began operation on the main network. PRODUCT PART Key mechanics: Its own language (Move) for development Batch processing of transactions Parallel execution of transactions Sharding Smart contract types definition on the blockchain level Availability of mem-pool transactions Strengths: Fast operation due to mem-pool transactions High TPS through parallel execution and batch processing Ease of Dapps development through specific types of smart contracts and proprietary programming language BUSINESS PART How does the product make money? Currently, the only way for the product to profit is through the sale or further investment of native APT token into Aptos ecosystem and other prospective projects. Aptos Foundation tokens total 165 million, valued at ~ 750 million USD according to current estimates. Among them, 5 million tokens were initially available, equivalent to approximately $23 million USD by current estimates. The remaining 160 million tokens have a 120-month linear unlock: ~ 1.3 million APT tokens per month and ~ 6.3 million USD at the current token valuation In other words, at a monthly APT token price of ~ 4-5 USD, the APT team will receive ~ 5-6 million USD for investment and venture activities. How can a product make money in the long run? If Aptos' technical solutions can be implemented, Aptos will be able to sell its infrastructure to financial and technical firms for use in implementing their products or developing joint products. Aptos' declared TPS is ~ 130k transactions, with a target of ~ 160k transactions; in comparison, Ethereum's average TPS is ~ 10 transactions per second, Arbitrum's is ~ 2 transactions per second, and Solana's is ~ 4k transactions per second. Team The founders and main developers are former Meta employees who worked on the predecessor of Aptos, Diem/ Funds and investors Aptos had 3 rounds of investments, total amount of fees ~400m USD Here are the main investors: Binance ParaFi Capital OAK Circle Ventures Apollo Bixin Ventures Franklin Templeton Investments Jump Crypto Tess Ventures Superskrypt Tokenomics 1. Total amount of tokens: 1b APT 2. Current circulation: 130m APT (125m APT for the community and 5m APT for Foundation) 3. Current market capitalization: 610m USD 4. Total market capitalization: 4.6b USD 5. Token unlocks: a) 160m APT tokensf or Foundation - monthly for 10 years, ~1. 3m APT monthly b) 385 217 358 APT tokens for the community - monthly for 10 years, ~3.2m APT monthly c) 324 782 640 APT tokens for key participants and investors - blocking the first 12 months, once every 2 months from 13 to 18 months ~6.7m APT, monthly from 19 to 48 months ~6.7m APT At the moment, users are not charged for transactions, so validators and stackers are incentivized with APT tokens for the community. This means that by the time the project's initial investors and key players unlock tokens, validators and stackers will have a higher aggregate volume than investors. The situation will level out over time. It is worth noting that, as retail investors and traders follow the trend, APT tokens of validators and stackers will be sold rather than accumulated during a bear market. CONCLUSION What to expect in the future? Aptos is a long-term project. If no technical risks occur, the project will be among the top 10/20 CMCs in terms of capitalization in the long run. Given the amount of money raised by the Aptos team and the monthly unlocks, the project should easily survive the current crypto-winter and grow to be one of the best projects in the industry. We should understand that the first year of Aptos is a year of ecosystem formation, development, and expansion. The same thing happened to Solana and Near. Our output: long or short In the short term, given the advantage of retail investors and the availability of futures markets on all of the top exchanges: On a falling market - short, because the project lacks the critical mass to deviate from the market trend. On an ascending and positive market - long, capitalization is small, circulation is a little over 10%, Aptos can show very good growth. In the long term, it is long. The project includes a buffer for quiet work in the next 2-3 years. For example, Near and Solana's resources have been significantly reduced, and the protocols' weaknesses can now be seen. In any case, your trading strategy, investment and trading planning horizon are significant to make decisions and these decisions are up to you! Thanks for reading this idea and the next one will be about Solana so follow us and get more knowledge about crypto projects.
by Samura0x
Daily review of BTC interval 1DHello everyone, let's look at the BTC to USDT chart on the 1D time frame. As you can see, the price from the fall after the problems with the FTX exchange moves sideways, we can also mark the triangle with yellow lines that BTC must keep and go up. Let's start with setting the support and as you can see in the first place we have a support zone from $ 16931 to $ 16700, but if the support does not hold the price, we have another zone from $ 16170 to $ 15477 when the second zone is broken we can see a drop down to $ 14360 and further $13,606. Looking the other way, we see that when we manage to break through the resistance from $17,158 to $17,621, we will open the way towards the resistance at $18,196, and only when the price breaks it will move towards strong resistance at $19,218. Looking at the CHOP indicator, we see that there is still some energy on the one-day interval, the MACD indicator indicates that we are in an uptrend, while the selling candles prevail on the volume.
by cryptodailyuk
CHZUSDT LONG-THERM Hello everyone, let's look at the CHZ to USDT 1 day chart. As you can see, the price has been moving in the downtrend channel for a long time. As we can see, we have marked two support zones, the first short-term zone is from $0.1446 to $0.1028, while if the price goes lower, we can see a drop to the second zone from $0.0487 to $0.0279. However, if the market changes its trend to an upward first zone of resistance, we have from $ 0.2187 to $ 0.2584 only when the price goes up from it, we can see greater increases around the second zone from $ 0.5186 to $ 0.7728. Looking at the CHOP indicator, we see that on a 1-day interval, the energy on the CHOP index has been exhausted, and the MACD indicator indicates a downtrend.
by cryptodailyuk
2
XRP - USDT on 1D interval Resistance and SupportHello everyone, I invite you to chart XRP in pair to USDT on a one-day time frame. Let's start by marking with the yellow lines the channel in which the price is moving and with the blue line the local uptrend line. As we can see, the price turned around nicely around zero seventy-eight and returned to zero sixty-one. Now let's check what current support we should consider and here we have the first support at thirty-seven cents, the second support at thirty-four cents, the third support at thirty-two cents and the fourth support at thirty-cents. However, for the price to freely start to grow, it must overcome a strong resistance from forty-two cents to forty-six cents, only when it breaks above this area and tests it successfully, we will be able to see further increases. It is worth mentioning that the energy on the CHOP index is strongly charged, the macdi indicator indicates that we are in the local uptrend, and on the volume, although it is small, we see the advantage of buyers.
by cryptodailyuk
Daily review of BTC interval 1DHello everyone, let's look at the BTC to USDT chart in the 4-hour timeframe as you can see we are moving in the downtrend channel marked with the blue lines. As for support, we should watch BTC price behavior within the channel, as a break below the designated channel can give a quick drop to a strong support zone from $13,172 to $12,709. On the other hand, when the price starts to rise, we can mark resistance places with green lines and in this situation, the first resistance is at $ 17,771, if the price breaks it, the next resistance is at $ 19,203 and $ 20,352. As you can see on the one-day interval, we have a lot of energy, the MACD indicator indicates a change in the trend to an upward one, and the volume for the last two days indicates the advantage of sellers, but it is clearly low.
by cryptodailyuk
2
XRP / USDT Review 1DayChartHello everyone, I invite you to the XRP to USDT chart in a one-day interval, as you can see the price has broken the downtrend line and is moving slightly sideways, bouncing off the local uptrend line. Now we will check what supports we can take into account when the price starts to fall further and here we see that we have the first support at $0.37 if this support is broken we have another strong support at $0.31. Looking the other way, we will also determine the resistance that the price has yet to overcome, as you can see, the first resistance is at $ 0.41, the next is at $ 0.44, then $ 0.47 and $ 0.51. Looking at the CHOP indicator, we see that in the 1-day interval, the energy is very charged, and the MACD indicator indicates that we have entered an uptrend.
by cryptodailyuk
ETH - USDT, 1D Interval Resistance and Support Hello everyone, let's look at the ETH to USDT 1 day chart. As you can see, the price is moving in the downtrend channel, which is important in its lower part. Let's start with setting support and as you can see ETH has a strong support zone from $1129 to $883 ahead, moreover looking at the recent move we can mark the $974 level as a strong place where the price may turn around. Now let's move to the resistance line, as you can see the first resistance is $1301, if you manage to break it, the next resistance will be $1444, $1555 and $1669. Looking at the CHOP indicator, we see that in the 1-day interval, the energy is strongly charged, the MACD indicator indicates the continuation of the downward trend, and the volume shows little interest on the part of sellers and buyers.
by cryptodailyuk
4
ETH - USDT, 1D Interval Resistance and Support I invite you to discuss the behavior on the ETH versus USDT chart. We can see that the price from June to September moved above the uptrend line, which we left the bottom on September 18, moving in the downtrend channel marked by blue lines. Despite this, the price of XRP came up from this channel, after negative news about the FTX exchange, it dived quickly and returned to the downward channel. In recent days, the price has moved above the local uptrend line, but now it has to overcome the downward trend in order to return above it. Now, with the help of the Fibonache tool, we will mark the support zones for the XRP price, and as you can see, we have a support zone from one thousand three hundred twenty six dollars to one thousand one hundred thirty five dollars where the price is currently located, then we have support lines at a price of eight hundred eighty five dollars. We can also check that a strong resistance zone, when the price starts to rise, we have from one thousand six hundred and seventy-four dollars to one thousand eight hundred and thirty-five dollars, but before that we have to overcome two places of resistance at one thousand five hundred and fifty-four dollars and before that, one thousand four hundred and forty-two dollars. The CHOP index indicates that the energy is depleted on the one-day interval, the makdi indicator shows a downward trend, and on the volume we see a small red candle that says that sellers have an advantage on November 11th.
by cryptodailyuk
2
EURUSD I It will correct downward from resistance zone Welcome back! Let me know your thoughts in the comments! **EURUSD - Listen to video! We recommend that you keep this pair on your watchlist and enter when the entry criteria of your strategy is met. Please support this idea with a LIKE and COMMENT if you find it useful and Click "Follow" on our profile if you'd like these trade ideas delivered straight to your email in the future. Thanks for your continued support! Brian & Kenya Horton, BK Forex Academy
Short
by BKTradingAcademy
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XRP / USDT 1daychartHello everyone, I invite you to review the XRPUSDT chart for one day. As we can see, the price dived strongly and quickly returned to the uptrend line. It is worth noting that the price has two trend lines on its way that must be overcome, so we can see that XRP has already tried to overcome the first trend three times. Now let's move on to the designation of the support line and in this situation we can see that the first support is at $ 0.35, the second at $ 0.32, the third at $ 0.30 and the fourth at $ 0.28. Likewise, we will set the resistance lines that the price must overcome in order to continue rising. We have the first resistance at $ 0.40, the second at $ 0.46, the third at $ 0.55 and the fourth at $ 0.64. Now let's move to the CHOP index which indicates that the energy is slowly starting to rise, on the MACD indicator we can see that on the one-day interval we are in a downward trend, and the volume shows a large green buying candle, while today the selling candle has a small advantage.
by cryptodailyuk
2
XRP - USDT on 1W interval Resistance and SupportHello everyone, I invite you to a review of the XRP chart, in tandem with USDT, on the interval of one week. As you can see, we have been moving in the downtrend channel marked with yellow lines for a long time. On the other hand, locally we move above the upward trend line marked in blue. Let's move on to determining the support that the price has in the event of drops and as you can see, in the first place we have a support zone from forty one cents to thirty two cents, if this zone is broken, we have another support at the price twenty-four cents. Looking the other way around, it is worth determining the places of resistance if the XRP price starts to rise. In this situation, we have a resistance zone of fifty-two cents to sixty-seven cents, and if we manage to overcome this zone, we have another strong resistance at ninety-one cents. Please look at the CHOP index, which indicates that in the interval of one week we still have a lot of energy for the next move, while the makdi indicator shows that we are in an uptrend.
by cryptodailyuk
1
Daily review of ETH interval 4HHello everyone, check out the ETH to USDT chart on four hour intervale. Let's start by marking the trends with white lines and, as we can see, the price has beaten the first tendency, but on its way to larger increases it has to overcome the second tendency. Please note that we have dropped below our uptrend line, nevertheless, the price remains above the first trend and locally above the uptrend line. Let's check what support we can designate for the ETH price for the near future and in this situation we have the first support at $ 1541, if the support is broken, the next support is $ 1453, $ 1381 and $ 1313. Now let's move to the resistance line as you can see the first resistance is $ 1661, if you can break it the next resistance will be $ 1736, $ 1797 and $ 1850. Looking at the CHOP indicator, we can see that in the 4-hour interval the energy has been used and is now slowly starting to rebound, while the MACD indicator shows a local downward trend.
by cryptodailyuk
1
GAL/USDT 1DInterval - Resistance and SupportHello everyone, I invite you to review the GAL / USDT chart on the 1 day interval. First of all, we will use a white line to mark the downward trend, which the price has already tried to overcome several times upwards. However, looking at the chart, we see that the local price fell below the local uptrend line. Now let's move on to the support designation and as you can see, we first have support zones from $ 2.02 to $ 1.92, then we have support lines at $ 1.66. Looking the other way around, we can identify several resistance lines for the price, the first resistance is at $ 2.18, the second is at $ 2.33, the third is at $ 2.46 and the fourth is at $ 2.57. Please take a look at the CHOP index which indicates that we have a lot of energy in the 1 day interval, and the MACD indicator shows an upward trend.
G
by cryptodailyuk
Fundamental analysis in cryptoThrough fundamental analysis , we can try to detect the authentic and objective value of cryptocurrencies in spite of their market price. Through these techniques, we can assess whether a cryptocurrency is undervalued or overvalued, and we can detect a trading opportunity. With fundamental analysis , traders evaluate and study what can affect the price of a security, such as external factors or events. This type of analysis takes advantage of tools like periodic financial statements, financial ratios, economic forecasts and other types of additional information that can affect the value of a security. There are different approaches to fundamental analysis that analyse micro and macroeconomic variables in different ways: 1. Top-down approach: through this approach, the trader analyses macroeconomic variables first and then microeconomic variables. Global information is taken in first, followed by more detailed and specific values and variables addressed. With this approach, the trader looks at the world economic situation, and then looks more at the most economically attractive countries, along with the sectors with the most potential, and within them, chooses which ones are most convenient to invest in. 2. Bottom-Up approach: this approach is the opposite of the previous one: first the trader chooses companies with growth potential, analyses the sector they operate in and then the economic situation of their countries; the overall global economic situation is the last thing to be analysed. THE ADVANTAGES: This approach allows the investor to collect and analyse information external to the markets but that might still influence prices. This way, the investor has a clearer vision of the reality of the market. THE DISADVANTAGES: The trader using fundamental analysis needs more thorough knowledge and experience of accounting, business and, in the specific, the sector of interest. Moreover, investment terms with a fundamental analysis are longer because it requires more studying and background with respect to other analytical tools, like technical one. It can also be outweighed by chance factors, such as physical disasters affecting commodity prices and companies in general. In general, markets can also be surprised by unexpected changes in economic and political scenarios. In the specific case of crypto markets, fundamental analysis can be used to analyse the exterior components that can affect cryptocurrencies. Fundamental analysis can be carried out by looking at its use cases or community, but also at the team behind every specific crypto project, something that tells a lot about its overvaluation or undervaluation. Indeed, in the case of crypto markets, there are no financial statements, and therefore they cannot be evaluated as normal financial assets. Most cryptocurrencies are still in the developing stage and they do not have a lot of real-world applications; they rely mostly on miners, users and, of course, developers. It can be of great importance given that crypto markets are relatively more volatile and less stable than others, and due to their irregular situation investors react quickly to exogenous factors. These factors can vary and go from regulatory pressures to simple tweets - take Elon Musk as an example. Fundamental analysis can indeed help comprehend the fair value of crypto assets - data about this can be found on different websites, such as Reddit or Telegram. The use of technology is of utter importance. The investor can assess the usability of the adoption of the cryptocurrency he's interested in, but this tool can also be used to study how governments value cryptocurrencies and whether they want to implement new regulatory policies about it. We can also identify the progress that it's being made in terms of technology, such as how the activity of cryptocurrency is developing, along with its software or media coverage - all these factors contribute to increasing the crypto asset's value. From a psychological point of view, it can also help the investor trade with more confidence, knowing that a thorough analysis has been carried out. When the analysis is done daily, it can help you develop a finer investment strategy. In terms of financial metrics, what can be used is: Market capitalisation: the investor can look at the total market worth of cryptocurrency, which indicates whether there is space for growth. To get that, you multiply the current price per coin by its supply. Liquidity, or how easy it is to buy or sell the asset. A liquid market is a competitive market and is usually favoured by investors, also because it entails a lower bid-ask spread. Volume: it spurs liquidity because it is telling of how much money has been exchanged for a certain asset. Fundamental analysis usually prioritises the assessment of transaction values. If the transaction value is consistently high, it means that the cryptocurrency is in steady circulation. Fees: they reflect the demand on the blockchain. Every cryptocurrency can have its own transaction fee. The assessment of the fees paid over various periods gives the trader an idea of how secure the crypto asset is. Supply mechanisms: general microeconomics state that when supply is low and demand is high, price rises. A general belief for cryptocurrencies is that when supply runs out, the price will rise (this is, for example, a general prediction of Bitcoin holders). On the other hand, investors can also use project metrics for their fundamental analysis: Whitepaper: it is a technical document outlining the purpose and operation of the project. It should comprise the blockchain technology solutions, the use cases for the currency, the planned features and upgrades, sale and team information, and tokenomics (the factors that impact the tokens' use and value). The team: crypto teams are easily accessible to assess nowadays so that the investor can learn more about them and their credibility. The competitors: the investor can conduct an analysis of the crypto assets; competitors. If there are other cryptos which are more widely adopted or valuable, maybe it is best to back off from the item of interest. Last but not least, important instruments when evaluating cryptos through fundamental analysis are Blockchain metrics or On-chain metrics. The rising popularity of blockchain has made sure that lots of different types of information could become extremely popular, such as the number of active users, total transactions and transaction value. There are three fundamental metrics in this case: 1. Hash Rate : this is a measure of the mining machine's ability to conduct hashing computations in an efficient way. The hash rate also determines the profitability of the miner, as it indicates the likelihood that a block will be mined, and, indirectly, the chance of receiving the block reward. An investor should look at cryptos with a more extensive network because they are more resistant to attacks or data manipulation. 2. Status and Active Addresses: active addresses measure the number of dynamic blockchain addresses over a period of time. They are helpful in comparing the growth or decline of the activity or interest in the coin or token. The investor can also get to the active address through the computation of the total number of unique addresses over time (and a comparison of the results). 3. Transaction values : they can be determined for the assessment of the regular circulation of the crypto asset. It indicates how much money was exchanged on a given period, and therefore, the number of transactions.
BITMEX:XBTEducation
by vf_investment
The most important week of 2022 is finally upon us.FX:EURUSD This week of November will most likely be the most important week of the year. Context EURUSD has been in a bear market for the entirety of 2022, falling a whopping 16.2% . As the year begins to round up, talks of a FED pivot has been in the air and resulting in an increased risk on sentiments that have resulted in 2 consecutive weekly bullish candles. Where do price go from here? I have identified the 2 possible directions and insights/rationale to them. #1 Analysis: 1. ECB's dovish switch on recent monetary statement 2. Upcoming FOMC meeting will set to stone the stance of the FED 3. Maintained hawkish stance -> interest rate differential and tonality will prevail 4. NFP prints resilient and strong -> further incentives for hawkishness by FED 5. USD strengthens #2 Analysis: 1. Upcoming FOMC meeting CONFIRMS FED pivot to dovish territories 2. Time for doves and goodbye Hawks. 3. Increases risk on sentiments in the market. 4. NFP prints poorly which shows the rate hikes has done its job. 5. USD weakens Both ways are possible. Let's all wait and see how the week ends.
by Jon_Jones_Junior
MATIC / USDT 1D chart Resistance and SupportHello everyone, let's take a look at the MATIC to USDT chart on the 1D interval. As you can see, the price moves in the sideways channel and locally above the uptrend line. Let's start with the designation of the support line and as you can see the first support in the near future is $ 0.88, if the support breaks down, the next support is $ 0.83, $ 0.78 and $ 0.74. Now let's move from the resistance line as you can see the first resistance is $ 0.96, if you can break it the next resistance will be $ 1, $ 1.04 and $ 1.07. Looking at the CHOP indicator, we can see that the energy is slowly increasing in the 1D interval, while the MACD indicator shows an upward trend, but the blue line is close to the red crossing from above, which could confirm the trend change.
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by cryptodailyuk
1
JS-Masterclass #3: FundamentalsIn the recent tutorial 'Trading with the Trend - Stage Analysis', we have explained the importance of identifying stocks in a confirmed stage 2 uptrend using the 'Trend-Template'. What are the Fundamentals doing in a confirmed stage 2 Uptrend? The best stocks and buying opportunities available in the market meet the technical requirements according to Minervini's Trend-Template and have very healthy Fundamentals. Best Candidates - Growth - Accelerating EPS and Revenues - Explosive Market Position - Sustainable Trends - Scalable Business Model Worst Candidates - Capital Intensive - Limited Pricing Power - Heavily Regulated - Margin Pressure - Eroding Industry Position Watch out for these 3 key fundamentals – Earnings, Sales and Margins 1) Earnings in most recent 2-3 quarters +20% or more – the bigger the better; look for earnings acceleration – quarter to quarter sequential. Look at a 2 quarter average (up 20%) 2) Sales acceleration: sales increasing in most recent 2-3 quarters 3) Check profit margins – are they expanding or contracting? 4) Combination of sales and margins = earnings: gauge current growth versus 3-5 year growth rate (look for acceleration), Look for a breakout year How Do You Know if an Earnings Report is Really Great? 1. Results are better than the consensus of analysts’ estimates or, even better, earnings come in above the highest analyst estimate. Why? This will get the stock on the radar screens of big institutions. 2. The company raises its guidance for the upcoming quarter and the fiscal year significantly. 3. The stock price reacts positively to the earnings report and/or company issued guidance and resists meaningful profit taking over a number of days or weeks. 4. Analysts promptly raise estimates. (More than a 5% change from 30-days earlier is meaningful). 5. Revenue is reported above the consensus estimate (preferably above the highest estimate) and is also revised upward. 6. Earnings are “quality” – profit improvement comes from increased sales as opposed to a one-time gain or non-operating/non-recurring income. Keep in mind, cost cutting or “productivity enhancements” have a limited life span. 7. You can check Return on Equity to get an idea how good management is doing. You should compare this number to other companies in the same industry. 15-17% is a good cutoff for most stocks. Red Flags • Material earnings deceleration is a warning • Eroding margins is a warning • Positive earnings with negative sales – limited life span • A company showing strong earnings but not paying much in taxes is a red flag Even if you have found a stock with great Fundamentals: - Never trust the story - Never trust the numbers - Unless confirmed by price action
Education
by JS_TechTrading
4
Daily review of BTC interval 1DHello everyone, I invite you to the BTC to USDT review on a 1 day interval. Please see that the BTC price was moving in the uptrend channel, then it started to decline and moved in the triangle marked with blue lines. Currently, we managed to leave the triangle on the top and break the first trend. Now let's move on to determining the support btc has in the event of a correction, and as you can see, the first support line is at $ 19,713, the second support is at $ 19,029 and the next support is at $ 18,472. Looking the other way around, we can also mark the points of resistance, and here we can see that the first resistance line is at $ 20,765, the second resistance is at $ 21,492, the third is at $ 22,409, and a strong resistance at $ 25,028 that btc has to overcome so that it could grow to around $ 30,000. Please note the CHOP index which indicates that most of the energy has been used, while the MACD indicator shows an upward trend.
by cryptodailyuk
2
META Important Milestone!As you know, I am a long term investor. Thus, I usually buy stocks for the long term, and never short any equities due to shorting's unlimited risk. With a P/E ratio of 10, it would be reasonable to think that META is a good bargain considering its status as a social media giant. However: 1. META's Userbase is declining, something never seen before in the history of the company. 2. Competition like Google's Youtube and ByteDance's Tiktok is catching up and overtaking META 3. New Apple (AAPL) IOS changes, which made META's data collection process much harder, has and will adversely affect its ad revenue (which is 98+% of its total revenue) ---------- Specifically, the IOS change requires META to get the user's permission to collect data for Ads. Until now, data shows that only 33% of users allow META to collect their data for more personalized ads. I think you can see how this affects Ad revenue. Thus, the "metaverse" is the only thing that may/may not save META from its inevitable doom. However, that means that: 1. The metaverse needs to develop in the years ahead, and not just stay at a gaming level 2. META must have enough cash to fund research into the metaverse 3. It must dominate the metaverse industry Although I personally think that META is a lost cause, I choose not to label this as "#METAshort" because I think all investor have their own opinions. Here are some good points about META: 1. 10 P/E ratio (lower than S&P 500 average 2. META's adaptability 3. Technicals? (Not seen yet) I choose to write this now because META's Q3 results are tomorrow and are key to how META's stock and the metaverse will develop in the future. Anyway, thats all for my idea. Please leave a comment and boost this idea so it can go out to other investors! 😊 P.S. Someone give me coins :)
NASDAQ:META
by AlphaTigerInvestments