Technical analysis (TA) is a methodology for evaluating and forecasting the direction of prices through the study of past market data, primarily price and volume.

The goal of technical analysis is to identify patterns and trends that can indicate future activity.

Technical analysts believe that the historical performance of a security, such as a cryptocurrency or token in case of DeFi, can be used to predict its future performance.

They use charts and other tools to identify patterns, such as support and resistance levels, trend lines, and moving averages, that can provide insight into the security’s future price movements.

Technical analysis is often used in conjunction with fundamental analysis, which looks at a security’s underlying financial and economic fundamentals, to make investment decisions.

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