Airdrops can attract short-term attention but may lead to price volatility as tokens are quickly sold off. To assess long-term value, look at the project's utility, team, roadmap, and community engagement.
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On-chain data provides insights into blockchain activity, such as transaction volumes, wallet balances, and token movements. Analyzing these metrics can reveal trends like whale movements, increased network usage, or large holders shifting positions. For example, if a significant number of tokens move from exchanges to private wallets, it might signal that holders are preparing for long-term storage, potentially reducing sell pressure. Conversely, large amounts of crypto being deposited onto exchanges could indicate selling pressure. By monitoring on-chain metrics alongside technical analysis, traders can gain valuable insights into market sentiment and future price movements.
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Market depth analysis shows the order book’s buy and sell orders, revealing support and resistance levels. A large accumulation of buy orders at a specific price indicates strong support, while large sell orders near resistance suggest potential price ceilings. If the price breaks through these levels with significant volume, it signals a breakout. By observing how orders are filled and whether large walls are being absorbed, traders can predict potential price movements and set appropriate entry or exit points based on the market’s supply and demand dynamics.
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