In cryptocurrency trading, we often see entire sectors move together. DeFi coins can be curved upwards together, while metaverse tokens skyrocketed on the news that Facebook is getting a facelift.
But this week's group of cryptocurrencies have very little in common ... except for a trading indicator that lit up in pulsing green neon letters before its prices trembled higher.
Today we are seeing:
- Polygon (MATIC) - A Layer 2 Scaling Solution for Ethereum
- Aave (imaginatively, AAVE): a decentralized finance (DeFi) asset
- Voyager (VGX) - A Crypto Trading Platform
- Koinos (KOIN) - a fee-free entry-level blockchain built for scalability
- Linear (LINA): a cross-chain asset protocol
They have all made significant profits in the last month, and despite their differences, they have something in common.
Each achieved a VORTECS โข score above 90 before reaching their maximum price levels.
In fact, all of these tokens exhibited patterns of business and social behavior that were surprisingly similar to the conditions in the past that preceded the rallies. And once these tremendously strong trading conditions were detected, most of these cryptocurrencies entered virtuous cycles in which their price dynamics generated increased volume of transactions and tweets, which, in turn, fueled the next phase of trading. a rally.
Was there any chance traders would get on these moon-bound ferries early?
A sign of extreme confidence
The indicator that screamed over the extremely optimistic conditions is called the VORTECS โข Score, a tool available through Cointelegraph's subscription-based data intelligence platform. Markets Pro.
Their job is to compare current trading and sentiment conditions with historically similar situations and alert traders when bullish patterns are detected. Live test of the VORTECS algorithm It has been ongoing for over ten months.
A VORTECS โข score above 80 is confidently considered bullish. On average, there are 30 to 50 weekly instances of assets that cross the threshold of 80 scores.
However, scores of 90 or more are rare. In an average week, there are usually no more than 4-5 cases of such scores, and sometimes a full week can go by without a single 90.
These ultra-high scores signify the algorithm's strong confidence that observed conditions are similar to those that preceded an asset's stellar price performance in the past. What previously reported, scores above 90 sometimes precede price appreciation which can last for several days.
Here's how it worked with some of the highest VORTECS โข assets last month.
KOIN: + 100% after the maximum score
KOIN, an asset whose first VORTECS โข score had been calculated on November 5, got off to a formidable start from the beginning. The asset's score touched the 90-hour mark after its debut at the price of 22 cents.
In one day, it peaked at $ 0.44, an increase of 100%. The bomb was accompanied by an additional 432% of trading volume and 221% of the usual level of tweets.
The particularly surprising results of Koinos' price appreciation event may be partly attributable to its low market capitalization, which stood at just $ 20 million before the dramatic price hike.
MATIC: + 35% after VORTECS maximum score
MATIC's stellar run this month has been driven by an increase in the number of active Polygon addresses, as well as project launches on the Polygon network. The asset's high VORTECS โข score of 94.2 occurred on October 16 (red circle on the chart), when the asset was trading at $ 1.56.
After the maximum score, the price of MATIC did not skyrocket immediately, as the favorable conditions did not fully materialize until almost two weeks later. However, the maximum price increase recorded after the record score amounted to 35%, with a concomitant 6.68% increase in trading volume and an 11.08% increase in tweets mentioning the asset.
AAVE: + 11% after the maximum score
AAVE's high water mark came on October 18 when it displayed a VORTECS โข score of 90.8. At the time, the DeFi token had been changing hands for $ 304.
AAVE's ultra-high score anticipated a rally that lasted another 11 days, culminating in the $ 338 price recorded on October 29. The gains in trading volume and tweets were even more impressive: 488% and 118%, respectively.
LINA: + 13.4% after the maximum score
LINA posted its most optimistic historical outlook on October 11 when its VORTECS โข score reached 90.2 against the price of $ 0.052.
In the next phase of its price action, the price rose to $ 0.059 over a seven-day period, accompanied by a staggering 439% increase in trading volume and a 200% increase in tweets.
VGX: + 3.7% after maximum score
Voyager Token (VGX) showed its highest VORTECS โข score of the month (91.9) quite late in its tremendous rise from $ 2.11 to $ 3.05.
The asset price continued to hover around $ 3 for the next four days, driven by a 42.89% increase in trading volume and a 10.19% more intense Twitter conversation on the back of the historically bullish outlook. VGX momentum has faded somewhat in early November, however strong fundamentals could point to an imminent resurgence.
We can conclude from the above analysis that looking at the tokens that achieved the VORTECS โข score of 80 proved to be an efficient strategy for traders looking to identify a variety of assets with a good probability of performing well in the coming days.
Focusing on those few who score beyond 90 may serve better Markets Pro Members who prefer to trade with higher confidence levels and longer terms.
Cointelegraph is a financial information publisher, not an investment advisor. We do not provide personalized or individualized investment advice. Cryptocurrencies are volatile investments and carry significant risk, including the risk of permanent and total loss. Past performance is not indicative of future results. Figures and graphics are correct at the time of writing or as otherwise specified. Live tested strategies are not recommendations. Consult your financial advisor before making financial decisions.
