There are two perspectives on how the price of LINEA is determined.
Fundamental Value: This approach looks at on-chain metrics, project performance, and financial indicators of LINEA. Over the long term, factors like supply and demand, tokenomics, use cases, project roadmap, and relevant regulations or governance can all affect LINEA's value.
Price Action: This perspective primarily involves using technical analysis tools like chart patterns, MACD, RSI, and Bollinger Bands to forecast price movements of LINEA based on past trends, based on the principle that 'history tends to repeat itself.' Price action of LINEA is also affected by news, announcements, and the general sentiment of the community.
While long-term investors focus on the fundamentals, short-term traders typically rely on technical indicators. Both can influence the price of LINEA.