In the fast-paced world of cryptocurrencies, many traders rely on technical analysis while neglecting fundamental analysis – or vice versa. But the secret to true success lies in the smart integration of both.
In this article, I will guide you step by step on how to link the two analyses to achieve more accurate and profitable trades.
🧩 The difference between technical and fundamental analysis:
Technical analysis Fundamental analysis
Relies on charts, price action, and indicators like RSI and MACD Focuses on news, technical developments, team, and institutional investment volume
Answers the question: When do I buy? Answers the question: Why do I buy?
⚙️ Steps for effectively merging the two analyses:
1️⃣ Fundamental analysis first:
• Is the project active? (Check CoinMarketCap or Messari)
• Are there upcoming news? Such as updates, partnerships, or new listings
🟢 Example:
• $PYTH Announced a new integration with Solana
• $INJ is preparing to launch a new platform
2️⃣ Then proceed to technical analysis:
• Open the $PYTH/USDT or $INJ/USDT chart on Binance
• Use tools like RSI, support and resistance, and chart patterns
• ✅ Combine technical signals with news to determine entry timing
📌 Quick practical example:
🔹 Currency: $PYTH
🔹 Fundamental analysis: Positive news + new partnership
🔹 Technical analysis: price at strong support + RSI below 30
✅ Decision: Buy with a stop loss below support, and take profits at resistance
⚠️ Important notes:
• News can temporarily raise the price and then drop suddenly (Buy the rumor, sell the news)
• Do not rely on a single indicator, gather more than one piece of evidence
• Entry timing is as important as the reason
💡 Final tips:
• Do not trade on a rumor alone, always verify the sources
• Choose currencies with real utility, not just a temporary trend
• Have a clear trading plan, and be flexible if the conditions change
📎 Trading links for the mentioned currencies:
🔗 Trade $PYTH on Binance
🔗 Trade INJ on Binance
