Cryptocurrency is a risky investment, and the market has high volatility, and many users invest without proper research based on luck. The market is unpredictable, but with the correct knowledge and experience, you can estimate the future price of coins. If you are looking for a crypto exchange platform, we recommend you choose KuCoin because it is the best platform that provides the latest ustc, USDC, doge prices, and various other features.
KuCoin also provides its users with crucial knowledge about the behavior of coins, and many technical analyses are utilized for that purpose. This article will look into 5 essential KuCoin indicators that many expert analysts use to predict the coin price. So let’s get started.
What Is the Technical Analysis Of Crypto Coin?
Technical analysis, or, as many call it, crypto indicators, are mathematical techniques used in many financial approaches to determine future behavior. The coin prices are not completely random, but they are a result of some factors, there are many methods to know about the coins, and it can be good for investors willing to buy or sell these coins. These are some of the indicators that the experts use:
Moving Average
Moving average is the primary method to determine a coin’s performance and predict its future cost. This method draws an average line around the fluctuating price that You can extrapolate to predict the approximate coin price. This method is highly ineffective for long-term investment as the market behavior does not follow a single line for a long time. If the coin price is above the average line, then it is an uptrend; if it is low, then the coin is a downtrend.
Moving Average Convergence/Divergence
This indication technique is the extension of the moving average, but it considers more parameters and factors and is much more accurate than the previous indicator. The technique uses a mathematical model to tell when a trend has started or ended. It has more baseline, and the intersection of two lines indicates the change in trend. When the coin price is above the signal line, it shows bullish momentum, and when the coin is below the signal line, it is in bearish momentum.
Average True Range
This technique measures market volatility and is used to determine market activity. The coin value is based on demand and supply, defining whether the coin is in an overbought or oversold state.
Relative Strength Index
It is one of the most widely used techniques for short-term profit and measures the deflection of coin prices from their real or expected value. The RSI graph ranges from 0 to 100 and has two lines on 30 and 70. If the coin price is above 70, it is time to sell, and if the prices are lower than 30, then it is time to purchase.
Volume Indicator
The Volume Indicator is the best approach to analyze the market activity, and it also considers the trading volume of the coins. The market volume has a reverse relation with coin price means if the prices are high, trading volume will be low, and if the prices are low, then the volume will be high. MFI and OBV are the main volume indicators. MFI is based on RSI, and OBV is the measure of cumulative volume and price
