📊 What to watch for when analyzing a chart and a token
When studying the chart of a token, it is important to track not just the price. Here are some essential aspects that help us better understand the situation:
🔹 1. Trading volume (Volume)
Price increases without volume can be unstable. High volume indicates real interest from traders.
🔹 2. Trend and levels (Support/Resistance)
Even a simple trend analysis helps us see if the market is moving up, down, or sideways.
🔹 3. Volatility
Strong fluctuations can indicate risks. Stability is often more important than rapid increases.
🔹 4. Project information
— team
— purpose of the token
— development plan
— partnerships
These details are sometimes more important than the chart.
🔹 5. Tokenomics
Supply, burning mechanisms, and the issuance method influence long-term evolution.
🔹 6. News and events
Updates, listings, upgrades — all can influence the price.