Market Analysis

Jul 22, 2024

How to always buy the dip?

As the global altcoin market expands, the key question remains: how do we find the best buying price? 

While there's no perfect entry point, using technical analysis and historical charts can help identify favorable buying ranges.

When to buy? 

 

The best time to invest is during the accumulation period. 

Entering the market at this stage generally offers minimal risk and the greatest opportunity for substantial gains.

If you miss the early accumulation phase, consider investing during market dips when anxiety is high.

Wait for prices to stabilize in the accumulation zone.

Be patient, let the best price pattern emerge, and avoid rushed decisions.

 

How to Buy? 

 

Pinpointing the ideal moment to buy is impossible.

So it's crucial to have a plan for when prices are favorable.

The best approach is the Dollar-Cost Averaging (DCA) technique 

First, decide the total amount you plan to invest in your chosen token.

Then, divide this investment into smaller portions and set limit orders at key points, such as support levels.

This method ensures a reliable average entry point for medium and long-term investments.

By utilizing the DCA strategy and setting limit orders when the price reenters the accumulation zone, investors can secure an advantageous average purchase price for the token.

What to buy? 

 

Focus on purchasing narrative-driven tokens.

Different narratives gain hype at various times, and profits can be maximized by selling tokens from trending narratives and buying into less popular ones. 

Diversification is a key

Allocating funds across diverse token narratives helps capture growth potential, even if one underperforms. 

Actively developing areas now: 

• AI

• RWA

• DePIN

• L2

• GameFi

• BRC20

Conclusion:

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