Interpreting DeepDive Reports

A DeepDive report contains a lot of information. Here's how to extract actionable insights.

Reading the Summary First

Every report starts with a summary. This gives you:

• Quick verdict — Bullish, bearish, or neutral outlook
• Key strengths — What's working for this project
• Key concerns — What could go wrong
• Action points — Suggested next steps

If you're short on time, the summary often tells you what you need to know.

Evaluating Market Data

Market Cap Categories

Volume Analysis

• Volume/Market Cap above 10% — High activity, very liquid
• Volume/Market Cap 1-10% — Normal trading activity
• Volume/Market Cap below 1% — Low activity, be careful with large positions

Price Context

• Compare current price to all-time high
• Check how far from recent highs/lows
• Look at price change over multiple timeframes

Understanding On-Chain Data

Holder Distribution

Note: Always exclude exchange wallets and known burn addresses from this analysis.

Transaction Trends

• Rising transactions — Growing usage and interest
• Falling transactions — Declining activity
• Spiky transactions — Often speculation-driven

Smart Money Signals

When sophisticated wallets accumulate or distribute:

• Accumulating = Potential bullish signal
• Distributing = Potential bearish signal

Remember: Smart money isn't always right.

Reading Technical Levels

Support Levels

Support is where buyers historically step in:

• Strong support — Multiple bounces at this level
• Weak support — Only tested once or twice
• Breaking support — Bearish signal

Resistance Levels

Resistance is where sellers historically appear:

• Strong resistance — Multiple rejections
• Weak resistance — Tested briefly
• Breaking resistance — Bullish signal

What to Do With Levels

• Consider buying near support
• Consider taking profits near resistance
• Use levels to set stop losses
• Don't treat levels as guarantees

Weighing Risk Factors

DeepDive highlights risks. Here's how to evaluate them:

High Severity Risks

• Very concentrated holdings
• Anonymous team with large allocation
• No audit on smart contracts
• Declining user metrics

Medium Severity Risks

• High correlation to Bitcoin
• Limited trading venues
• Short track record
• Competitive market

Lower Severity Risks

• Price volatility (expected in crypto)
• Regulatory uncertainty (affects all crypto)
• Market conditions (external factor)

Developing Your Own Thesis

A DeepDive is a starting point. Build your thesis by asking:

1. Do I understand what this project does?

   • If no, research more or skip it

2. Why would this token increase in value?

   • Use case growth? Token utility? Speculation?

3. What would prove my thesis wrong?

   • Identify your exit triggers

4. What's my time horizon?

   • Day trade? Swing? Long-term hold?

5. How much am I willing to lose?

   • Position size accordingly

Common Mistakes

Over-relying on DeepDive

• It's AI analysis, not a crystal ball
• Always do additional research
• Consider what the report might miss

Ignoring Red Flags

• Every token has risks
• Don't dismiss warnings that conflict with your hopes
• The risk section exists for a reason

Analysis Paralysis

• You don't need perfect information
• Make decisions with incomplete data
• Set rules and follow them

Combining Multiple Reports

For best results:

1. Run DeepDives on competing tokens
2. Compare metrics side by side
3. Look for outliers (good and bad)
4. Consider which fits your strategy

Next Steps

• Run your first DeepDive
• Track promising tokens in a watchlist
• Understand market conditions