1. Technical Analysis: This approach calculates the future price of Market Cap based on historical data. The longer the forecast period, the less accurate it becomes due to the high volatility of cryptocurrencies. One year is typically the limit as a forecast period. Technical analysis is a paramount method for Market Cap contract trading.
2. Valuation: This strategy focuses on value investing, eschewing technical analysis to delve deeper into an asset's intrinsic value and thereby reducing trading frequency. This approach, often used by legendary investors, is crucial for spot investment. When market participants talk about investing in a crypto asset and earning returns multiple times their investment, they're referring to buying spot based on valuation and holding for the medium to long term. BingX provides valuations for a variety of popular tokens. To view the valuation of Market Cap, click on Market Cap Price.
3. MVRV (Market Value to Realized Value): This indicator requires extensive data, the most critical being the price and quantity of Market Cap purchased via on-chain wallets, which requires meticulous calculation. MVRV only predicts whether the price is currently high or low. It's often used alongside valuation strategies to decide when to buy and sell Market Cap. Insights from the Market Cap MVRV are included in the "Market Cap Price" section.