The reason for the rise or fall of the cryptocurrency (or any financial asset) depends on the law of supply and demand, but several main factors directly influence price movement:
---
First: Reasons leading to an increase in the currency (Bullish)
1. Increased demand
Entry of large investors (whales).
Increase in the number of new users.
Real use of the project (e.g., using the token in a practical application or platform).
2. Positive news
New partnerships with major companies.
Launching a successful technical update (like network upgrade).
Listing the currency on major platforms (like Binance or Coinbase).
3. Scarcity and reduction of supply
Token Burn.
Reduction in mining rewards (Halving like Bitcoin).
Users holding the coin and not selling it (HODL).
4. Technical analysis
Breaking strong resistance + support from indicators like RSI, MACD.
Unusual increase in trading volume.
5. Media momentum (FOMO)
Buzz on social media.
Recommendations from influencers or analysts.
---
Second: Reasons leading to a decrease in the currency (Bearish)
1. Increased supply versus demand
Intensive selling by whales or large investors.
Releasing large quantities of tokens to the market (like the end of the lock-up period – Unlocking).
Exit of liquidity from the project.
2. Negative news
Security breach of the project.
Lawsuits or regulatory bans.
Failure in a technical update or cancellation of partnerships.
3. Overall declining market (Bear Market)
A decline in Bitcoin usually drags down the rest of the market (Altcoins).
Panic and random selling (Panic Selling).
4. Negative technical analysis
Breaking strong support.
Indicators like RSI below 30 or negative crossover in MACD.
Negative reversal candles (like engulfing or shooting star).
---
Simple example:
A coin like KASPA:
If it is announced that it will be listed on Binance = demand increases = price rises.
If a security breach occurs in its official wallet = market trust decreases = people sell = price drops.