RSI

The RSI offers additional insight into the market’s momentum by measuring the size of Liquity price moves to determine whether it's overvalued or undervalued. Market traders use the RSI as a momentum indicator to identify overbought or oversold conditions and to decide whether to accumulate or sell an asset. Readings above 50 and an upward trend indicate that bulls still have an advantage, whereas readings below 50 suggest the opposite.

According to the RSI, In the 1 Week time frame, Liquity is currently trending bearish with the actual RSI reading at 0.00. The 50 line could provide resistance if the indicator returns to it.

Moving averages

Moving averages are an important analytical tool that provides traders with a bigger picture of what is happening in the charts by calculating the Liquity average closing price over a set period of time. The relationship between short- and long-term moving averages is crucial in determining the trend’s direction. When the short-term MA moves above the long-term one, it is a sign that the trend is gradually turning bullish.

In the 1 Week timeframe, Liquity is in a neutral trend since the 50-x MA has crossed below the 200-x MA, and the price is trading above both.

Alternatively, the trend is neutral if the 50-day MA has crossed above the 200-day one, but the price is trading below them (and vice-versa).

MACD

Finally, the MACD uses a Simple Moving Average (SMA) and an Exponential Moving Average (EMA) to more accurately predict the trend. In similar fashion to simple MAs, the relationship between these two is helpful in determining the trend’s direction.

For all these indicators, the weekly time frame is used to determine the long-term trend, the daily time frame is used for the intermediate trend, while the six-hour one is used for the short-term trend.

According to the MACD, in the 1 Week timeframe, Liquity is currently trending bearish since the MACD signal line moved below 50 periods ago, and the histogram has been negative for 50 periods.

Current Liquity Price

Liquity currently sits at a price of $0.43048 (LQTY/USD) with a live market capitalization of $42.18M. The 24-hour trading volume is $198.16K which is a 0.84652% positive. With a circulating supply of 97.94M, Liquity's price movement is currently positive.

Liquity Fundamental Analysis

Fundamental analysis aims to assess the inherent value of an asset, while technical analysis involves examining statistical patterns in the price and volume of that asset. Both techniques are employed to analyze and predict potential developments in the future price of that asset.In the case of LQTY, the most straightforward way to perform fundamental analysis is to look at supply and demand dynamics. Additionally, it is possible to look at the market capitalization amount ($42.18M) and the circulating supply of (97.94M) - Circulating Supply to arrive at reasonable price assumptions for the future. On the demand side, it is possible to look at on-chain data relating to the number of active and new addresses and transaction count.

What drives the price of Liquity?

There are a number of variables in the cryptocurrency market that can drive the price of Liquity upwards or downwards. The major force behind Liquity’s asset value is the market’s supply and demand. Whether the demand for more LQTY increases or decreases depends greatly on growing adoption.Furthermore, significant events such as protocol updates or hard forks may also play a significant role in Liquity’s price.Another prime factor to consider is whale activity. Large holders of Liquity can greatly impact the price as one large sell order can drop the price significantly. In addition, never underestimate the power of large institutional adoption and political regulations on Liquity’s value.

Summary

It’s important to note that price predictions may appear contradictory. There is no clear-cut method for determining the future value of any cryptocurrency. This is because many factors are involved in price prediction. It’s not uncommon for one announcement to greatly change the trajectory of a coin’s price at any given time. The entire market as a whole can affect one coin’s movement as well as any updates on the project’s technology. This is why you should always do your own research before investing in any cryptocurrency.