Fundamental analysis is an important factor to know whether to hold or abandon an order that some people do not pay attention to. Why is it so important?
Suppose: a coin listed on the exchange is a company, then we need to project the price of that company by similar companies on the market.
Example 1: Alt's current capitalization is 280 million $ALT similar projects have TIA (1 billion 2), Manta (314 million $). With my perspective, the level of fomo and the reputation of the project, I can expect ALT to reach a capitalization of 1 billion $, which is 4 times the current price. I can buy now and hold it. (Pay attention to the token unlock schedule, I will write about this in the next post)
Example 2. Project $EIGEN works on staking with TVL 12B$ valued at 750 million USD (price taken when eigen reached 4$). Similar project $OP TVL 22 billion USD. From that, we can deduce that the real value of the EIGEN project is around 600 million USD, so shorting is preferred.
In general, there are many things I want to say but I'm afraid you don't understand. If you have any questions, please ask me. Thanks.
