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Of course, without adequate forecasting of further events, it is extremely difficult for investors and traders to conduct their activities. With the help of this information, promising coins are selected, trading strategies are built, etc. It is often difficult for one person to carry out such an analysis on their own, so other sources of information have to be processed as well.
What should be considered when working with forecasts?
First, you need to understand that no forecast can give 100% correct information. This is primarily due to the peculiarities of the cryptocurrency market as such - its relatively low capitalization, short period of active existence, high volatility, lack of regulatory mechanisms typical for traditional markets, etc.
Often, the future of a particular currency can be influenced by the actions of whales and pumps, and it is generally unrealistic to predict such actions without being an insider. In addition, it is never possible to predict how different events will affect the development of this market. For example, all sorts of government bans or just statements about their imminent introduction have repeatedly caused the market to fall, which is why many forecasts have not been implemented.
Therefore, in the cryptocurrency market, a forecast accuracy of 70-80% is already considered a fairly high indicator, and such forecasts should be based on a deep study of market analytics, the history of the chosen cryptocurrency, the news background that surrounds it, the developers' plans, etc.
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