How To Predict The Price Of Cryptocurrency – Find Out Here
News plays a significant role in the crypto industry. On the one hand, they serve as an explanation of the rise or fall in the value of cryptocurrencies. On the other hand, they are a direct cause of changes in their rates. As experience shows, it is difficult to predict such fluctuations. But the ability to distinguish material news from information junk can help both earn money in the digital money market and not lose your savings. So, what news pay attention to predict the price of cryptocurrency?
Often, large movements both in the market and in the case of certain crypto coins occur in connection with some loud informational occasions. For example, on December 12 last year, the Chinese social network was blocked the account of Justin Sun, the founder of TRON, after which the token price fell from $ 0.01410 to $ 0.01330. Probably, traders began to sell the altcoin on the background of negative news, which led to a decrease in its rate.
However, a few hours after that, the price of the token recovered and rose above the previous values, to $ 0.01420. This can be explained by the fact that after the decline in value, coin began to be bought by both those who were attracted by its low rate and those who sold the coin due to news about the blocking. As a result, total purchases turned out to be more than sales, which is why TRON rose in price.
Growth drivers
If you find news pay attention to predict the price of cryptocurrency, notice that cryptocurrencies are best valued against the backdrop of events that indicate the development of the project and its real application in life. For example, the Waves token rate has grown by more than 100% in 3 weeks. This happened immediately after Waves Enterprise announced that it was developing a solution for metering electricity consumption through a blockchain partnership with Rosseti Corporation.
Another example of “luck” is the Ethereum Classic take off. The coin began to rise in price after the announcement of the Agharta hard fork, designed to ensure the compatibility of its network with the Ethereum blockchain. Against this background, the price of ETC during the month increased from $ 3.4 to $ 7.3.
It is not superfluous to mention the Matic token, the price of which for the month increased by almost 300%, and then fell to its previous values in a few days. The reason for the rise in price of the coin could be a series of positive news. The start up reported on participation in various conferences, announced the addition of its product to a new exchange and announced the introduction of stacking. The most controversial is the situation with Bitcoin SV. Mid January its cost rose to $ 430, per day it increased by 150%, and in 2 weeks – by 350%.
The explosive price increase of altcoin followed a series of attempts by its creator Craig Wright to prove that he is Satoshi Nakamoto. The developer also started a rumor that he would soon gain access to 1.1 million BTC. However, co-founder of TokenAnalyst company Sid Shehar called the BSV rally not a consequence of the news, but a “coordinated pump”.
Unpredictable events
Fluctuations in the course, as is the case with TRON, can be not only with separate tokens. A similar situation occurred on November 27 throughout the crypto market, when the Whale Alert Twitter bot recorded the withdrawal of 342 thousand Ethereum from the Upbit exchange. Suspicions of hacking appeared in the community, which were later confirmed by the site management. While choose news pay attention to predict the price of cryptocurrency remember that against this background, traders, presumably, began to get rid of cryptocurrencies, fearing that the theft and subsequent sale of such an amount of ETH could negatively affect their value.
As a result, Bitcoin fell by 4% within an hour, from $ 7150 to $ 6850. However, then the value of the asset began to grow rapidly and soared to $ 7500 in a short period of time.
Such events in the crypto industry are called the word FUD. This is an acronym for English “Fear, Uncertainty and Doubt”. The term refers to a situation where rumors or unconfirmed news affect the rate of cryptocurrencies, which is obviously beneficial to a narrow segment of the audience.
Examples of how the news had a positive impact on cryptocurrency rates are also available. A few months ago, on October 24, Chinese President Xi Jinping announced the need to introduce blockchain as one of the key technologies. After that, the price of Bitcoin for two days soared by almost 40%, from $ 7400 to $ 10 300. Then, the value of the coin went into a phase of decline and in a month fell to $ 6700, by 35%.
At that time, altcoins based in China also showed significant appreciation. For 4 days, TRON has risen in price by 50%, and NEO – by more than 100%. At the same time, Xi Jinping’s appeal had nothing to do with these tokens, and cryptocurrency trading in the country remained banned. Also, as in the case of Bitcoin, an increase in the value of coins was followed by its prolonged decline.
Exchange actions
Similar but short-term jumps in altcoin prices often occur on Binance. The exchange holds contests with specific tokens, which leads to a short-term rise in their value and often ends in its fall.
For example, on mid December Binance announced a competition for traders that involved the WINK token. Immediately after the announcement of the exchange, the altcoin rate increased by 16%, but a day later it returned to its previous level.
On the same day, another token price went up. Kava went up 18%, a few hours after Binance announced that it would support stacking on the altcoin network. But, as in the case of WINK, its value fell to its previous values by the end of the same day.
Based on this, it seems that you can manage to buy a token before its value grows if you follow Binance messages and respond to them promptly. But practice shows that this is not the case. As a rule, just a second after the announcement of the exchange about holding a contest with alternative coin, its rate rises sharply. Therefore, it is not so easy to decide what is worth a specific news pay attention to predict the price of cryptocurrency.
Since September, Binance has organized more than a dozen trading contests, and all of them took place according to a similar scheme.
In December, a similar competition took place on the EXMO exchange. To participate in it, it was necessary to hold a ROOBEE token. At the same time, the more coins a trader bought, the greater were his chances of winning.
