What Causes Cryptocurrency to Rise and Fall

16% of Americans invest in cryptocurrency, and that number is expected to grow. But with cryptocurrencies being such a volatile asset, it is challenging to know the best time to buy and sell. We’ll explain what causes these explosive rises and falls in cryptocurrency prices so you can invest more wisely.

Key Crypto Market Indicators that Cause Cryptocurrency to Rise and Fall

While no one can accurately predict the crypto market’s future, some technical analysis calculations and indicators can spot trends, warnings, and patterns in the cryptocurrency market that can help you see the signs of when a crypto coin will rise or fall.

A single indicator can’t signal a reversal or confirm a market trend. But you can use a combination of crypto market indicators to identify signals that typically cause a token price to rise or fall. By analyzing a token’s past trading activity, you’ll recognize signs of price movement in the future.

The type of crypto trading strategy you adopt will determine which indicators are most useful to you.

Technical Analysis Indicators

These technical analysis indicators are traditional trading tools to assess when an asset’s price will trend up (bullish) or down (bearish). Many crypto exchanges build these tools into their crypto price chart to help investors assess whether it is an excellent time to buy or sell.

Moving Average (MA)

This lagging indicator calculates the price averages over a specified time period and identifies crypto trading patterns. Common time periods that traders most use are 200-day, 50-day, and 20-day moving averages.

Simple Moving Average (SMA)

This indicator tracks price trends that don’t change direction very quickly and give a bigger picture of long-term trends. A 50-period SMA is a popular tool for identifying support and resistance trends.

Exponential Moving Average (EMA)

This indicator tracks real-time price changes and gives more weight to recent price action.

Bollinger Bands

This indicator has three parts that show price volatility. It uses a 20-period SMA and two bands that illustrate positive and negative standard deviations from the SMA.

Moving Average Convergence Divergence Indicator (MACD)

A popular crypto trading indicator, the MACD identifies when moving averages are moving toward or apart from one another, highlighting when a crypto price is changing in direction, momentum, strength, and duration of the price trend. 

When the MACD is above 0, the price has an upside momentum. Below 0, the price has downside momentum.

Relative Strength Index (RSI)

A momentum indicator identifies a crypto coin’s strength or weakness based on recent price changes where the coin was oversold or overbought. The RSI can signal divergence and warn of trend reversals.

It is usually measured over a 14-day period on a scale of 0 – 100. If the coin drops below 30 on the RSI, it is oversold. Over 70 on the RSI signals that the currency is overbought.

Want to buy and sell crypto with ease? Learn more about Unbanked’s cryptocurrency solutions. 

Related Link: How to Diversify Your Crypto Portfolio: Best Strategies

Social Media Indicators

You’ll also want to follow and evaluate social media and search traffic for the cryptocurrency to identify when a price will rise and fall. If the company announces a partnership or gets influencer promotion, it can spike the crypto’s price. For crypto projects you invest in or may invest in the future, you may want to follow.

Fear and Greed Index

You also will want to pay attention to the Fear and Greed Index, which measures the trading market sentiment and can signal when investors have a fear of missing out (FOMO) and will trigger a buying frenzy.

The Fear and Greed Index analyzes when investors are feeling greedy or uncertain from a number of sources:

  • Bitcoin dominance
  • Google Trends
  • Polls
  • Social Media
  • Trading Volume

It then identifies the market sentiment on a scale of 0 to 100. 0 being extreme fear, and 100 being extreme greed. When the index measures that greed is high, prices go up. When investors are fearful, crypto prices drop.

What Causes Cryptocurrency to Rise and Fall, pexels-ivan-babydov-7788009-1-1024x576, Cryptocurrency , Unbanked, Unbanked Card, Crypto Card, Unbanked Debit Card, Crypto Debit Card, BlockCard


Being the first cryptocurrency and gaining the largest market cap within the market, Bitcoin influences the entire market. So regardless of how successful your cryptocurrency is performing, if Bitcoin is having a bad day and its price drops, the whole market follows.

As more coins grow in adoption, Bitcoin’s influence over the market will diminish. But currently, it’s critical to watch Bitcoin’s price movement. When Bitcoin is down, this is a good time to buy other crypto tokens because they will trend down with Bitcoin.

What Causes Cryptocurrency to Drop?

Aside from being a highly volatile market, US News points to six factors that cause cryptocurrency to drop:

  • Crypto investors leverage too much
  • Lack of liquidity
  • Government regulations
  • Security and network breaches or attacks
  • Crypto influencers can create fear and panic-sells
  • Influence of the stock market and Wall St.

Want to eliminate crypto deposit and transaction fees? Sign up for 

the Unbanked BlockCard VISA.

Related Link: How to Invest in Crypto (Without Buying Cryptocurrency)

What Causes Sudden Rises in Cryptocurrency?

Just like the stock market, common factors can cause sudden rises in cryptocurrency as a market or for an individual coin:

  • Influencers and social media can cause investors to FOMO into buying
  • Traditional finance institutions announce investments in cryptocurrencies or Bitcoin
  • Market events and conditions can increase investor confidence
  • Wider public adoption as a viable investment opportunity or digital payment
  • Altcoins will spike in price when added to larger cryptocurrency exchanges
  • Becoming more accessible and easier to trade
  • Company news, partnerships, or announcements
What Causes Cryptocurrency to Rise and Fall, pexels-alesia-kozik-6770611-1, Cryptocurrency , Unbanked, Unbanked Card, Crypto Card, Unbanked Debit Card, Crypto Debit Card, BlockCard

Do Your Research And Follow These Indicators to Invest Wisely

While no one can predict the cryptocurrency market future, you can watch key indicators that signal trends when a coin’s price rises or falls. By researching and monitoring these indicators, you’ll be able to buy crypto coins at the best time and get out before prices drop drastically.

Unbanked publishes the latest trends, news, and shifts in the blockchain markets that may influence your investment strategy. We believe in educating investors on blockchain platforms and technology so they can invest wisely.
Related Link: Cryptocurrencies as a Solution for the Unbanked

The Latest

Unbanked Will Be Winding Down

Today, we are making the unfortunate decision to wind down Unbanked.  When we started the company back in 2018 we knew blockchain was the best way to transmit value in the form of cryptocurrencies or stablecoins, but it needed to be connected with the existing global financial system for everyday use.  Integrating the blockchain to… Read Article

Unbanked Investor Update April 2023

Unbanked Investor Update – April 2023

Hello Everyone! Needless to say that there has been no shortage of news since the last investor update in January.  If you had told me at the end of 2022 that Unbanked would be worth more than companies like BlockFi, Celsius, FTX, Voyager, etc. – I would have said you’re crazy.  It seems every week… Read Article

Unlocking the Secret Language of Crypto: Your Ultimate Slang Guide

The world of crypto is admittedly confusing. Some people have trouble understanding how it works and what it even is. Others have trouble understanding how they can operate within this world.  To make matters worse, crypto has so much slang associated with it that it has effectively formed a new language. Terms like FOMO, FUD,… Read Article

Unleashing the Power of ApeCoin: How One Cryptocurrency is Disrupting the Market

If you’ve been paying attention to the world of crypto or digital media, chances are you’ve heard of Bored Ape Yacht Club. Bored Ape Yacht Club is a massively popular NFT collection released by Yuga Labs. Now, the ApeCoin cryptocurrency is set to make as big of a stir as the NFT collection did.  So,… Read Article


Crypto Rewards
on Spend

You also have access to:



Nah, I enjoy high fees...

Unbanked will be winding down — for more information, please read the latest update.
This is default text for notification bar