
Cryptocurrency Analysis: Strategies, Tools, and Market Insights
The cryptocurrency market is often characterized by volatility, a high level of innovation, and a rapidly changing atmosphere. Investors ,and traders, use a mix of analysis techniques to interpret price movements, risk and trade-related decision-making. This article deals with the major types of cryptocurrency analysis and applies them in a current market context.
๐ Types of Cryptocurrency Analysis
1. Technical Analysis (TA)
Technical analysis or TA, is where a trader analyzes past price data in order to interpret the markets and predict how the market will behave in the future (and consequently what to buy and sell). TA is widely utilized in cryptocurrency markets due to the continuous operation of exchanges and the analysis-rich environment that cryptos provide 24/7.
Key Tools & Indicators:
Moving Averages (MA): This analysis intends to provide a smoother price action signal, through price averaging and expected trends. The 50-day and 200-day moving average is often referenced.
Relative Strength Index (RSI): This oscillator measures the velocity of price changes and determines the overbought/oversold behaviour.
MACD (Moving Average Convergence Divergence): This analysis provides buy/sell signals, based on the momentum (gaining or diminishing).
Support and Resistance Levels: Support and resistance are levels at, or near, price levels where a price can pause and/or reverse direction.
For example, in June of 2025, Bitcoin (BTC) is still trading below the 50-day moving average โnegativeโ market signal. The current RSI registering ~43โ which is neutral to slightly oversold .
2. Fundamental Analysis (FA)
Fundamental analysis analyzes the intrinsic value of a crypto by looking at the utility or use case, the development team, how many people are using it, market cap, and on-chain activity.
Some metrics to take into consideration include:
Network Value to Transaction (NVT) – compares a coin’s market cap with its transaction volume so higher values may indicate overvalued coins.
Active Addresses โ shows how engaged people are with the currency.
Developer Activity – GitHub commits – shows continued development on the project and new innovations.
Macro trends – changes in regulations, new adoption (i.e. institutions), and economic changes will also impact fundamentals.
Example:
I view Ethereum as foundationally solid with long-term growth due to its role in DeFi and NFTs but there a few concerning factors for the network. First, high transaction fees are trouble and second, the competition from chains like Solana and Avalanche may threaten Ethereum.
3. Sentiment Analysis
Sentiment analysis looks at the emotions of market participants by looking at news, tracking social media where sentiment and public opinion are expressed. Websites like LunarCrush and Santiment track the number of social pages of coins being discussed and whether the overall sentiment is positive, neutral, or negative (of if it is even being discussed at all).
Sources used:
Twitter + Reddit trends
Google search trends
News headlines
Fear & Greed Index.
In June 2025, sentiment has shifted to the bear side because of:
Increased geopolitical tension (i.e. Israel-Iran)
Worries of more rate increases in the U.S.
A market correction after recent peaks.
๐ Current Market Analysis – June 2025
Cryptocurrency Prices Trends TA Outlook FA Outlook
Bitcoin (BTC) ~$104,000 Down Bearish (Falls below 50-day MA) Valid utility for the long-term.
Ethereum (ETH) ~$2,500 Sideways Neutral/Bearish Strong fundamentals and ETH 2.0 is live.
Solana (SOL) ~$145 Uptrend last few months. Bullish Good momentum for NFTs and gaming.
XRP ~$0.65 Volatile Not very clear. Depends on if a ruling is made in the U.S.
In June 2025, sentiment has shifted to the bear side because of:
Increased geopolitical tension (i.e. Israel-Iran)
Worries of more rate increases in the U.S.
A market correction after recent peaks..
In June 2025, sentiment has shifted to the bear side because of:
Increased geopolitical tension (i.e. Israel-Iran)
Worries of more rate increases in the U.S.
A market correction after recent peaks.