Crypto Academy Season 2 Week2|| Homework post for professor (@stream4u)||price Forecasting

Greetings to you great steemians. Greetings to all esteemed Steemitcryptoacademy professors. I am delighted to be a participant in this season 2 Week2 Homework given by
Professor @stream4u

Topic: Price Forecasting

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Briefly About Price Forecasting

Price Forecasting refers to the activities involved in determination of the possible price a given crytocurrency. In forecasting price of cryptocurrency some traders use some designed software or simply use the recent market statics and data to make analysis and predict something close to the real price of their asset in the future. It is true that no one can predict the future correctly but it is possible to make speculations on what the market chart could look like in a given time interval.
In summary, price Forecasting means price prediction or price speculation.

Why Price Forecasting

It is one thing to possess a crytocurrency. It takes another thing to maximize and earn more from that crypto. The major aim of engaging in price Forecasting is to increase profit and reduce possibility of a greater loss in value of his crypto currency.

For instance, let us consider two investors who have just acquired pieces of a oo crypto coin in a given time at the rate of five dollars per Coin. This technically implies that each coin is worth $5 dollars and total of each investors coin value will be $25 dollars.
Investor(A) leaves his coin in his wallet with hope that the value of the cryptocurrency is going to increase and he will then make some gain off his coin.
Investors(B) continued to observe, analyse and predict the price of his crypto to determine when he could make a trade.
After a time interval of two months we could get the following outcomes
• Investor(B) would have made more gain off his coin when compared to investor(A)
• Investor(A) could incure a great loss on his coin value but investor(B) having being busy in the act of price Forecasting could lose little or not lose at all in his coin value.
In summary, price Forecasting is important if an investor or trader must maximize profit from his asset/crypto.

Methods Employed in Price Forecasting

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Speculation of price in the crypto world could be accomplished using the price analysis methods. They include:

The Technical analytical method:

This analytical method, the trader attempts to study and understand the price movements, the chart movement, the market support and the market trend of his concerned coin.

The fundamental analytical method:

This analytical method focuses more on the company and its board of management, how they are faring in the system, the company's weekly or monthly balance sheet and their borrow ratio in an attempt to predict the market price outcome in a given time.

The sentimental analytical method:

In this analytical method, traders observe closely information they obtain from forums, news, discussions and even the media to cast their own verdict on the future price of their crypto.

How to forecast price with the aid of a chart graph.

Here I will attempt to predict the price of my desired coin, the XRP at exactly three months from the day publishing of this post.
In my forecasting, I am going to use the technical analytical method. I am specifically going to draw my analysis based on the XRP chart in the last three months.

• As at Thursday, January 21st 2021, the price of XRP was about $0.2777216.

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• Also on Sunday February 21st 2021, the price of XRP was about $0.537275 as against it's $0.2777216 worth in the previous month gaining a 93.46 percent worth of the previous price.

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• On Sunday march 21st, 2021 the price of XRP was about $0.517003. Here we can observe that the price did not change much when compared to the previous month.

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• As at today being Wednesday 21st April, 2021, the price of XRP is about $1.40995 gaining a percentage increase worth of 172.7 percent.

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Since we can see that inthe past 3 months there has been drastic increase in the price of XRP with a percentage increase of 172.7 percent, I am Forecasting that in the next 3 months their will be a 133 percent increase in the price of XRP leaving XRP price to be at $3.28518.
With this prediction, a trader could invest more on XRP since XRP has the ability of doubling it's value in 3 months interval.

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