Scientific analysis of Catizen (CATI):
1. Circulating supply and total supply:
Circulating Supply: 280.28 million CATI.
This is the number of coins currently available for trading in the market. Increased supply in the market can increase liquidity but at the same time it can put pressure on the price.
Max Supply: 1 billion CATI.
This means that only 28% of the total supply is currently in the market. There are still 720 million CATI that have not been released, which when injected could negatively impact the price through dilution effect if not accompanied by increased demand.
2. Market value:
Fully Diluted Market Cap: $381.64 million.
This number represents the potential market cap if all coins (1 billion CATI) were traded at the current price.
Current Market Cap: Approximately $106.96 million.
It shows that the current market cap only reflects the coins in circulation (280.28 million CATI). This large gap indicates the potential risk of future supply inflation, which could put downward pressure on the price when the rest of the coins are pumped.
3. Price Analysis and Bottom Levels:
Record low: $0.3658 on October 24, 2024.
This price indicates a potential bottom. These bottoms may be a good entry opportunity provided that technical indicators and fundamentals support the rebound.
Record high (ATH): $1.1108.
Compared to the current price, the coin is down significantly (~67%). This drop reflects either a sharp correction or strong selling pressure due to concerns about the project or market conditions.
4. Risk Analysis:
Supply-side inflation risks:
With 72% of the coins remaining out of the market, pumping these quantities could lead to a price drop if it is not accompanied by strong demand or new projects that increase the value of the coin.
Liquidity analysis:
If liquidity is low in secondary markets (like Binance or others), the price may experience sharp fluctuations when large investors (market whales) move in.
5. Investment opportunity:
Bottom Level: As the price reaches its lowest levels, this may indicate a buying opportunity if the market is about to rebound or if there is positive news coming.
Technical Analysis: Technical indicators (such as RSI and moving averages) should be monitored to see if there are strong entry signals, and to confirm the end of the downtrend.
6. Final recommendation:
Buying Opportunity: This may be a good time to enter if there are positive technical signals or news supporting the project, while monitoring future supply flows.
Risk Management: Stop Loss strategy should be set at a level close to the current price to avoid any additional losses if the downtrend continues.
Monitor Demand: Make sure to keep track of demand for the coin and any new news about partnerships or developments in the underlying project.
conclusion:
This analysis shows that CATI may be at a critical turning point today. With the price reaching its lowest level, there is a possibility of a price rebound if demand increases or positive news comes out. However, one should be aware of the risks of supply inflation and follow developments carefully.
