Throughout the cryptocurrency ecosystem, Moonbeam has made plenty of positive waves for its commitment to interoperability across Polkadot chains. The capabilities that Moonbeam has not only as a cryptocurrency, but also as a smart contract operating network, mean that GLMR price forecast capabilities are always in high demand.
Naturally, having the data to hand is one thing – learning how to create an effective price prediction out of it is the real science. In this article, we will dive into the various factors that affect how GLMR price forecast tactics work – as well as give you ideas how to do your own research (DYOR) with the data we make available to draw your own conclusions.
Please remember that this information below is written for information purposes only, and is not direct financial advice. Readers ought to make their own decisions and invest only what they feel comfortable with spending, with forewarning of the volatile nature of crypto assets and the capital risk inherent to any form of investment.
How does cryptocurrency price prediction work?
As we will explore in this article, cryptocurrencies are given various kinds of price prediction that are based on several factors. The most obvious of these is data, as made possible by graphs, charts and live feeds of transactions taking place in real-time – something we specialize in for Moonbeam here.
However, another key detail for making any Moonbeam price prediction – as with any other cryptocurrency – is market sentiment. For example, in late 2020 and late 2021, confidence in the cryptocurrency market overall was high, which would be positive sentiment.
In 2022, a combination of inflation in fiat currencies, complications due to regulatory scrutiny worldwide, and the infamous Terra Luna debacle created a great deal of caution and negative sentiment in the cryptocurrency market. Almost every kind of crypto asset has its market value affected by these factors, and this would also affect how lucrative your GLMR price forecast could be.
Combining these factors – the hard data made possible by our live feed technologies, as well as the overall sentiment shaping the wider cryptocurrency market – will help you to make more educated decisions when making a Moonbeam price prediction.
However, it’s wise to also broaden the scope of your GLMR price forecast to medium and longer term estimates. This is more challenging to accomplish, but still something having data to hand makes easier.
Likewise, as cryptocurrency adoption becomes ever more mainstream, this too will affect the price of Moonbeam and plenty of other crypto assets – as well as the dawn of Web3 and mainstream smart contract technology adoption.
How to turn data into a Moonbeam price prediction
We will be exploring each of the resources we make available to our users in more depth, to help educate on how best to create a GLMR price forecast strategy to suit short term, midterm and long term investment styles.
Keep in mind this is for information purposes only, and is not direct financial advice. Likewise, remember that the cryptocurrency market is inherently volatile, and that even the most educated and sophisticated of price prediction tactics is simply that – a prediction.
Events beyond our knowledge can affect every cryptocurrency market – both positively and negatively.
Nonetheless, having some extra knowledge of how to logically do a GLMR price forecast is a good skill to have. Let’s explore which analytics relate to which kinds of predictions – and how best to read them for a reliable Moonbeam price prediction for your investing timeframe.
Every cryptocurrency and smart contract blockchain asset lives and dies by virtue of its level of adoption. While some crypto assets are doomed to forever be niche, a growing number of new accounts for Moonbeam often demonstrates a promising uptick in adoption.
Short term price prediction indicators to watch out for are new innovations, tools or systems being introduced to the Moonbeam ecosystem. These new developments make headlines among those who already hold Moonbeam assets – but they also encourage a strong uptick in the creation of new accounts.
More people with Moonbeam means more people to trade this asset with, and that makes for a very positive GLMR price forecast in the short term.
However, as new accounts come online in the longer term, the price prediction for Moonbeam will hopefully steadily rise. As any cryptocurrency finds its way into more hands – from ordinary people to enterprise level investors – it’s natural to see a more positive GLMR price forecast becoming the logical choice.
For midterm investments, you can use your own discernment to figure out how the short term sentiments and longer term new account figures will align.
For example, if an announcement is made relating to the Moonbeam blockchain or its smart contract utilization, and the release date for that update is four months from today, you could sensibly calculate a GLMR price forecast that would tick upwards closer to that release date.
Thanks to the transparency of blockchain technology, a smart investor is able to use the knowledge gained from monitoring Moonbeam transfers on the network – both minor and major – as a key price prediction metric.
A cryptocurrency only works if it is exchanged – nobody buys Moonbeam, Bitcoin or Ethereum with the intention of it sitting at a wallet address forever. Without trade and transfer, no asset has value.
For that reason, monitoring Moonbeam transfer metrics is a fantastic way to gauge the overall sentiment of the market, and devise a GLMR price forecast from that information.
The key point to remember in this strategy is that transfer volumes often indicate, and reflect, the pre-existing sentiments affecting the Moonbeam market.
As such, any time the number of transfers seems to rise, it’s smart to assume that this is due to the ongoing sentiment in play – be that positive or negative.
If a positive market sentiment is in play – a new release, a new listing on a mainstream exchange, a breakthrough in Moonbeam technology overall – the related rising number of transfers taking place on the Moonbeam blockchain will likely cause a more optimistic price prediction to be the most sensible estimate.
Meanwhile, if there is negative news creating a bearish sentiment – widespread cryptocurrency caution across all markets, for example, or some controversy in the thought leadership of Moonbeam and its team – the number of blockchain transfers will rise all the same – yet it will be a reflection of people moving value out of the Moonbeam ecosystem.
Again, that is an amplified sentimental reaction to news and events, but with a downward GLMR price forecast trend.
Once you learn how best to marry the news and rumor cycle with your Moonbeam price prediction tactics, the number of transfers taking place can prove a powerful ally in managing your wealth and investments.
While it could be easy to confuse transactions with transfers, it’s very important when forming your Moonbeam price prediction that you research each such metric independently and correctly.
More specifically, transactions differ from transfers because Moonbeam transaction metrics show how wealth is entering and leaving the Moonbeam blockchain ecosystem.
This relates to a number of factors from which an intelligent GLMR price forecast can be drawn – some relating to the transfers on chain that we discussed, but others offering a wider perspective on the market and Moonbeam’s place in it overall.
Naturally, higher liquidity in the Moonbeam ecosystem indicates a great deal of market confidence in both the asset and its capabilities in utility and technological innovation. You’ll see that as this kind of confidence rises, positive sentiment is generated – which means more people transfer wealth into the Moonbeam ecosystem.
This has a positive effect on price prediction, as you can appreciate – but it’s important to analyze whether this buy in trend is a short term frenzy on the back of positive news and hype, or a more sustainable long term Moonbeam investment strategy that will, in turn, affect how your GLMR price forecast for the longer term plays out.
Naturally, transfers in which wealth is withdrawn from Moonbeam and its ecosystem can be just as instrumental in forming an intelligent price prediction – and people liquidating their positions in Moonbeam isn’t always bad news.
Granted, if everyone cashed out of Moonbeam at once, it’d be catastrophic in the immediate term – but luckily it’s incredibly unlikely. Still, you may well find that transactions in which holders leave Moonbeam can be affected by things like bad press about GLMR, or bad confidence in the cryptocurrency market overall. Suddenly popular new assets can also cause Moonbeam holders to switch over and invest in another asset.
While all these factors can create a more downward price prediction for Moonbeam, you can also use this to your advantage if you choose. By buying when the price is lower, there are better mid to long term gains to be potentially had if a GLMR price forecast shows that transactions into the GLMR ecosystem are coming in the future.
Like many modern cryptocurrencies, Moonbeam uses proof of stake rather than proof of work to establish the validity of transactions and promote positive value on the network. This is often considered more environmentally friendly than cryptocurrency mining, and far less intensive on computer hardware as a whole.
What makes this important as far as perfecting your GLMR price forecast strategy is concerned is that tracking unbonding metrics live on the Moonbeam network shows you how many people are unstaking their coins.
Using a level of discernment is important here, as unbonding and unstaking Moonbeam does not always forecast an intention to sell. It's often wise to blend analyzing unbonding metrics when formulating a Moonbeam price prediction with other factors – transfers, transactions and overall positive or negative market sentiment.
At the grassroots level, all unbonding Moonbeam tokens does is restore them to a level of liquidity through which they can be exchanged, cashed out – or even bonded all over again. This is why understanding why people are unbonding at the levels they are at is important – has a high profile staking period recently ended, for example, or is this data speaking to a more emergent trend of people looking to cash out their Moonbeam?
Sometimes a high level of unbonding can simply represent holders choosing to switch providers, but still remain active in using Moonbeam to generate yield and other DeFi advantages.
For that reason, this can be one of the trickiest GLMR price forecast tools to use, but one that proves quite rewarding to master, as it details a very specific and nuanced area of activity and sentiment within the Moonbeam ecosystem.
It’s often wise to cross reference unbonding metrics with those of bonding overall, to more effectively see which direction people are taking their Moonbeam in. A healthy or rising level of Moonbeam staking indicates a period of relative stability and hopefully a positive price prediction for the coming weeks and months.
If people are liquidating Moonbeam and choosing not to bond it again at scale, be prepared to revise your GLMR price forecast strategy accordingly – a big whale movement or mass selloff event may be likely.
Either way, keep in mind that bonding is a bullish positive sentiment in the short term – but not always as reliable an indicator for a long term GLMR price forecast. Intelligently combining the knowledge you gain from our metrics is the key to making smart choices in how you invest, and when.
Perfecting your Moonbeam price prediction strategy
Learning how to engage in smart price prediction in any crypto asset is never easy – yet with the right data and an intimate knowledge of the overall sentiments shaping the Moonbeam market, there are some surprisingly advanced tools at your disposal.
It’s wise to exercise caution and really learn the ropes when experimenting with which metrics and what they mean. Remember, although we have explained plenty of the basics here, volatility and a level of speculation is often in play for any emergent technology or crypto asset – Moonbeam included.
Nonetheless, with these tools at your side, you hopefully have a far more effective way of deciding which Moonbeam investment strategy works for you.