Autor Cointelegraph By Beau Linighan

Here’s how traders got alerted to some of the biggest rallies of this week’s resurging market

Here’s how traders got alerted to some of the biggest rallies of this week’s resurging market

Uverejnil používateľ | feb 12, 2022 |

This crypto winter wasn’t a very long one. Having briefly touched $34,000 in the second half of January, Bitcoin (BTC) is on its way up again, touching the $45,000 mark on Feb. 10. Many altcoins have been catching up as well and posting double-digit weekly returns. However, not all relief rallies were equally impressive. Is there a way for traders to pick the assets that are about to pull off the strongest rebounds?Luckily, bullish marketwide reversals tend to look similar in terms of both price movement and other variables that shape market activity: rising trading volumes, spikes of online attention to individual tokens, and the elevated sentiment of social media chatter around them. Furthermore, the conditions that underlie individual assets’ rallies in a resurging crypto market often recur as well.What this means in practice is that automated data intelligence tools capable of detecting similarities between past and present trading conditions around crypto assets — such as the VORTECS™ Score, available to subscribers of Cointelegraph Markets Pro — can be especially efficient in alerting traders to impending price spikes when the market flips bullish.Bullish confidenceThe basic principle behind the VORTECS™ Score is a comparison between the asset’s trading conditions right now and those in the past. The algorithm constantly sifts through years’ worth of each digital asset’s historical data on price movement, trading volumes, and Twitter activity and social sentiment, seeking to identify combinations of these metrics that in the past regularly showed up before huge price pumps.The result is a Score that ranges between 0 and 100. Scores of 80 and above indicate historical outlooks that are bullish for roughly the next 10 to 72 hours. If a coin hits 90 or goes even higher, it means that the model is highly confident that it observes a pattern that consistently preceded past upsides.In a normal week, there will be an average of three to four instances of a VORTECS™ Score of 90 or above. But with the crypto market recovering, we saw 10 such cases from Feb. 3 to 10. On average, the assets that achieved a Score of 90 added 7% of value 24 hours after hitting the 90-VORTECS™ threshold and gained 15% after 72 hours. Here are the most impressive cases.KEEP: A weekly return of +58.64% after a VORTECS™ Score of 92VORTECS™ Score (green/gray) vs. KEEP price, Feb. 3–10. Source: Cointelegraph Markets ProThe price of Keep Network’s KEEP token had been steadily rising in the first half of the week, largely mirroring the market’s overall favorable trend and going from $0.46 on Feb. 5 to $0.58 on Feb. 8. Then, suddenly, a combination of historical trading conditions around the token started to look extremely bullish, as evidenced by a peak VORTECS™ Score of 92 (red circle in the chart). Nine hours after the peak Score, KEEP’s price skyrocketed, soaring from $0.57 to $0.76 in 10 hours.MNW: A weekly return of +54.63% after a VORTECS™ Score of 90VORTECS™ Score (green/gray) vs. MNW price, Feb. 3–10. Source: Cointelegraph Markets ProMNW, the utility token of supply chain management-focused Morpheus.Network, has sported robust fundamentals since mid-January when the protocol saw a smart contract upgrade and new masternodes integrated into the network. This past week, indications of strong trading conditions preceded both phases of MNW’s rally. The more powerful second phase came 12 hours after the asset flashed an ultra-robust historical outlook, reaching a VORTECS™ Score of 90 on Feb. 6. A subsequent price pump saw MNW hike from $1.33 to $1.72.LEO: A weekly return of +52.56% after a VORTECS™ Score of 91VORTECS™ Score (green/gray) vs. LEO price, Feb. 3–10. Source: Cointelegraph Markets ProUnus Sed Leo (LEO), an asset tied to crypto exchange Bitfinex, experienced massive upside pressure this week when the news emerged that the United States Department of Justice had recovered some 80% of Bitcoin stolen from the platform in a 2016 hack. The volume and sentiment of the online discussion have clearly shaped what the VORTECS™ algorithm recognized as extremely favorable trading conditions, marked by a Score of 91 that lit up in the early hours of Feb. 7. Less than two days later, LEO’s price spiked from below $5 to $7.53 within a few hours.As a famous saying goes, history does not repeat itself, but it often rhymes. Even the most favorable historical precedent is not a guarantee of future price action, but incorporating automated analysis of crypto assets’ past performance data into a trading strategy can hugely improve its performance.Cointelegraph is a publisher of financial information, not an investment adviser. 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 charts are correct at the time of writing or as otherwise specified. Live-tested strategies are not recommendations. Consult your financial adviser before making financial decisions.

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These tokens saw the biggest trading volume pumps last week. How could traders benefit?

These tokens saw the biggest trading volume pumps last week. How could traders benefit?

Uverejnil používateľ | feb 4, 2022 |

An uptick in trading volume is one of the key components of a digital asset’s healthy market outlook. It indicates both robust liquidity and a surge in fellow traders’ enthusiasm for the token. The relationship between the asset’s price and trading volume is a nuanced one: Volume spikes often trail strong rallies as more and more traders hop on the bandwagon in the hopes of a ride to the moon.Yet, in some cases, it is surging trading volume that leads to price appreciation. In such a scenario, getting alerted to anomalous trading activity around a token can help crypto investors to spot the early signs of an impending rally. Regardless of whether the trading volume spikes precede or follow the price action, the assets that exhibit unusual behavior on this key metric merit a closer look.The five assets featured below showed the greatest week-to-week increases in trading volume last week and were featured in the Unusual Trading Volume section of Cointelegraph Markets Pro dashboard. In three cases out of five, anomalous upticks in trading volume foreshadowed major price increases.FRONT: Trading volume explosion following an exchange listingFRONT, a token representing DeFi aggregator Frontier, topped the chart of last week’s trading volume movers chart with a 3041% increase on the heels of its listing on the Korean crypto exchange Bithumb. As evident in the graph, the Jan. 26 listing announcement had first triggered a price spike as the coin’s value almost doubled, soaring from $0.41 to $0.78 in less than 6 hours. FRONT’s trading volume followed the price dynamics closely, peaking the day after the announcement.QKC: A minor price pump anticipates a price peakQKC price (blue) vs. trading volume (purple), Jan. 22–29. Source: TradingView/The TIEQuarkChain (QKC) saw two dramatic trading volume increases last week, the greater one (+2862%) coming last and following the coin’s weekly price high. In a curious plot twist, there was also another, rather short-lived trading volume spike that came on Jan. 25 and preceded the price rally by roughly 18 hours.WAVES: Price wave first, trading volume wave secondWAVES price (blue) vs. trading volume (purple), Jan. 22–29. Source: TradingView/The TIEAt the height of its trading volume momentum that came on Jan. 27, WAVES registered an 860% increase compared to the week before. The volume pump followed a sharp price increase as the token shot up from $8.39 to $11.38 in about 5 hours. Trader activity remained high even as the price began to correct.LOOM: Short trading volume pump anticipates price peakLOOM price (blue) vs. trading volume (purple), Jan. 22–29. Source: TradingView/The TIELoom Network’s (LOOM) trading volume vs. price chart looks similar to that of QKC above: A sudden and short spike in the trading volume coming several hours before the week’s peak price. What caused LOOM’s Jan. 25 trading volume explosion from around $5 million to upwards of $34 million (a 520% increase compared to the previous week) is anyone’s guess. What is certain is that over the next day LOOM’s price added 14%, reaching the weekly high at $0.062.OXY: Price and trading volume rise togetherOXY price (blue) vs. trading volume (purple), Jan. 22–29. Source: TradingView/The TIEIn the case of Oxygen (OXY), starting from the Jan. 24 afternoon, both the price and the trading volume lines embarked on upside trajectories, moving up beside each other. A peak trading volume of around $3.8 million, registered on Jan. 26, marked a 421% week-to-week increase. A weekly price peak near $0.49 followed in 12 hours.Comprehensive crypto data intelligenceIn addition to the raw outlier data present in a dedicated section of the CT Markets Pro website, trading volume is also one of the key ingredients of the VORTECS™ Score, an algorithmic indicator comparing historic and current market conditions around digital assets to identify historically bullish, bearish, or neutral outlook.CT Markets Pro’s Unusual Trading Volume panel, Feb. 3. Source: Cointelegraph Markets ProAny single metric that shapes an asset’s market outlook can be uninformative on its own, yet it becomes much more useful when contextualized within a host of other variables that the VORTECS™ algorithm considers, such as price movement, social sentiment and tweet volume.Cointelegraph is a publisher of financial information, not an investment adviser. 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 charts 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.

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Defying the bear market, this automated strategy is up 15% so far in 2022

Defying the bear market, this automated strategy is up 15% so far in 2022

Uverejnil používateľ | jan 28, 2022 |

Let’s be blunt: Being in a bear market sucks profoundly as a crypto trader. Most strategies that work when everything is green lead to losses. Growing the value of a portfolio takes twice as much work for half as much progress. The uncertainty over how long the market will remain down is exhausting. During these times, making use of every available tool that can enhance traders’ decision-making is key to success.One such tool is the VORTECS™ Score, an algorithmic indicator available to the subscribers of Cointelegraph Markets Pro that is designed to use historical data on crypto assets’ performance to determine whether their current conditions are bullish, bearish or neutral.The Score can be creatively used in an infinite number of ways, but one hypothetical strategy based on detecting the strongest historical analogies massively outperformed both Bitcoin (BTC), which has lost some 25% of its value during the first month of 2022, and the aggregate altcoin market, whose losses are comparable. This strategy, called “Buy 90/Sell 70,” yielded a 15% gain between Jan. 1 and Jan. 27.What does Buy 90/Sell 70 mean?The most important thing about VORTECS™ Score-based testing strategies is that they are not meant to be directly replicated by human traders. Rather, they serve as a tool to assess the overall efficiency of the model over a period of time.Trades that inform this strategy occur on a server rather than an actual exchange. There can be dozens of them per day, and the testing portfolio gets rebalanced according to a formula after each trade. Still, the results that these tests generate can provide a compelling picture of the algorithm’s performance.The way the indicator works is as follows: The higher the VORTECS™ Score, the more confident the model is that the observed conditions are bullish for a coin, based on historical precedent. Conventionally, a score of 80 is interpreted as high confidence in the outlook’s bullishness. Such scores are observed frequently, with around 50 instances in an average week.Scores of 90 and above are much rarer; normally, there are just a few instances every week. What they indicate is that in the past, the observed setup of trading conditions reliably showed up before dramatic price spikes. The Buy 90/Sell 70 strategy means buying every asset whose VORTECS™ Score hits 90 and selling it once it drops below 70. If the testing algorithm already holds another asset at the time of the next 90 hit, the portfolio is rebalanced so that it holds all the qualifying assets in equal proportions.How it has gone down in 2022Throughout January 2022, a total of 18 crypto assets have achieved a VORTECS™ Score of 90. One of them was Voyager Token (VGX), pictured below, which hit the threshold on Jan. 25 against a price of $1.76 (red circle in the chart). Before the asset’s score went below 70, the price rose to $1.87. In the following hours, it went further up to $2.07, but that additional gain would not be accounted for in the 90/70 results.VORTECS™ Score (green/gray) vs. VGX price, Jan. 20–27. Source: Cointelegraph Markets Pro.The assets that hit the VORTECS™ Score of 90 tend to be more resilient than most other coins to the negative trends that exist in the wider market. Thanks to their extremely healthy individual conditions, these tokens delivered an average 5% gain within seven days of hitting the ultra-high score in 2021.Of course, a strong VORTECS™ Score performance is never a guarantee of future price movement. All strategies based on buying at the score of 80, for example, yielded negative returns in the first weeks of 2022. However, the success of the 90/70 strategy shows that historical precedent can be extremely informative even amid a massive correction in the crypto market.Cointelegraph is a publisher of financial information, not an investment adviser. 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 charts are correct at the time of writing or as otherwise specified. Live-tested strategies are not recommendations. Consult your financial adviser before making financial decisions.

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These were the 5 hottest coins on Twitter last week — And their price dynamics

These were the 5 hottest coins on Twitter last week — And their price dynamics

Uverejnil používateľ | jan 20, 2022 |

Crypto Twitter is a powerful place. Not only does the online discussion follow the ups and downs of digital assets, but it can also shape price action. Oftentimes, a spike in Twitter attention can anticipate a dramatic increase in an asset’s price. Yet, in other cases, the order can be reversed, or there may be no relationship between price and Twitter chatter at all.To harness the power of Twitter and use it as a tool for profit generation, crypto traders need two things: The first is the ability to quickly spot spikes in social attention around specific assets, while the second is sound judgment to tell if the anomaly is indeed a harbinger of an impending rally. While there are reliable algorithmic tools that cover the first ingredient — such as Cointelegraph Markets Pro’s Unusual Twitter Volume indicator — the latter requires instincts and experience.The following examples of assets that showed the largest week-to-week increase in tweet volume illustrate various scenarios around the relationship between price and Twitter conversation.Cream Finance: The Iron Bank effectCREAM price (blue) vs. tweet volume (green), Jan. 11–16. Source: TradingView/The TIECREAM, the native token of decentralized finance project Cream Finance, sported the greatest week-to-week tweet volume increase as conversation around the asset grew 543% more extensive. The reason for the popular excitement was the announcement that holders could stake their CREAM to receive the tokens of the upcoming Iron Bank, Cream Finance’s new protocol-to-protocol lending platform.As visible in the chart, the price hike that began to unfold on Jan. 13 went hand in hand with the intensifying tweetstorm. The discussion peaked on Jan. 14 when 216 tweets referencing CREAM were posted, against a price of around $72. Even as the chatter began to recede, the token continued to add value, breaching $92 on Jan. 15. In this case, the Twitter trend was clearly instructive, as CREAM’s price grew an additional 27% over the two days that followed the tweet volume peak.SwissBorg: Promo leads to a tweet surgeCHSB price (blue) vs. tweet volume (green), Jan. 11–16. Source: TradingView/The TIEWhile the price of SwissBorg Token (CHSB) remained in a rather narrow range between $0.52 and $0.57 throughout last week, there was a 521% increase on Jan. 14 in the volume of tweets that mentioned SwissBorg. What was the reason for the uptick? A Jan. 13 giveaway of whitelist spots for nonfungible token (NFT) mints that required liking and retweeting the original post to enter. Having reached upward of 13,000 retweets, it was a successful publicity move, but it had had little effect on the CHSB token’s price, however.Decred: Twitter reacts to a price pumpDCR price (blue) vs. tweet volume (green), Jan. 11–16. Source: TradingView/The TIEOne common scenario is an explosion of Twitter attention in response to a dramatic price hike. A case in point is the price of Decred (DCR) vs. its tweet volume last week. Late on Jan. 14, the coin’s market value shot up from around $60 to $86 in a matter of three and a half hours. Social excitement began building up only after the price peak, culminating in a high of 110 tweets the day after, when the price had already corrected to below $70.ZKSwap: Price and tweet volume increase togetherZKS price (blue) vs. tweet volume (green), Jan. 11–16. Source: TradingView/The TIEEarly in the week, ZKSwap’s ZKS token saw a modest price increase from $0.27 to $0.29, with the tweet volume peak of 116 posts coming on Jan. 12, ahead of the week’s price high. Although it does not look humongous, this attention spike marked a 370% increase in tweets compared with the week before.FTX Token: Tweet volume peaks ahead of the price peakFTT price (blue) vs. tweet volume (green), Jan. 11–16. Source: TradingView/The TIEFTX Token (FTT) had a strong week in terms of price movement, steadily climbing from $36.81 on Jan. 10 to $47.02 on Jan. 16. The asset’s spectacular run didn’t go unnoticed by Crypto Twitter, as the volume of conversation ramped up on Jan. 14 and reached its high-water mark the next day with 313 tweets. FTT’s solid performance continued even after tweet volume peaked. In this case, a spike in social attention could have certainly alerted traders to a profit opportunity.Getting alerted to Twitter anomaliesThose who don’t have time to scroll through their Twitter feed day in and day out can outsource the spotting of sudden spikes in the volume of asset-specific chatter to specialized tools. Markets Pro, Cointelegraph’s proprietary data intelligence platform, automates the process by showing a dedicated panel on the dashboard with five assets that are seeing an unusually high tweet volume.CT Markets Pro’s Unusual Twitter Volume panel, Jan. 20. Source: Cointelegraph Markets ProTweet volume is also one of the components of the VORTECS™ Score, a machine learning-powered indicator that compares historic and current market conditions around digital assets to aid crypto traders’ decision-making. The model takes in a host of other indicators — including market outlook, price movement, social sentiment and trading volume — to generate a score that shows whether the present conditions are historically bullish, neutral or bearish for a given coin.Cointelegraph is a publisher of financial information, not an investment adviser. 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 charts are correct at the time of writing or as otherwise specified. Live-tested strategies are not recommendations. Consult your financial adviser before making financial decisions.

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Here is how one algorithmic indicator anticipated multiple phases of FXS’ protracted rally

Here is how one algorithmic indicator anticipated multiple phases of FXS’ protracted rally

Uverejnil používateľ | jan 14, 2022 |

Frax Share (FXS) has been one of the few altcoins to pull off a dominant price performance amid the down market of late 2021 to early 2022. In the month between Dec. 14 and Jan. 14, FXS was up 128% against the U.S. dollar and 159% against Bitcoin (BTC). In addition to this impressive feat, FXS topped the charts of historically bullish trading conditions on multiple occasions throughout this period. What is behind the token’s recurring strong trading outlook?Governing a stablecoin ecosystemFXS is the utility token underpinning the Frax ecosystem — a stablecoin protocol that seeks to occupy a middle ground between entirely collateralized and entirely algorithmic stablecoins, thus harnessing the advantages of both designs.In accordance with the protocol’s highly “governance-minimized” approach to its architecture, there is a limited set of parameters that the community gets to adjust using the token. These include refreshing the rate-of-collateral ratio — i.e., the share of the protocol’s FRAX stablecoin that is stabilized either algorithmically or through collateralization — in addition to adding collateral pools and adjusting various fees.FXS’ supply is initially capped at 100 million tokens, and the protocol is designed for the token supply to be deflationary as the demand for the FRAX stablecoin rises. This mechanism could be responsible for at least some portion of FXS’ momentum in recent weeks. As Cointelegraph previously reported, FRAX added 300% to its circulating supply between late October and late December.Curve Wars winnerBecause of this link between the demand for FRAX and the corresponding shrinkage in the supply of FXS, rounds of FRAX adoption can theoretically result in waves of FXS appreciation. Evidence supporting this hypothesis can be found in several recent instances of the decentralized finance (DeFi) community adopting the stablecoin.For one, FRAX’s addition to the Convex Finance platform, where several major DeFi protocols compete for voting rights that can be leveraged to increase their respective stablecoins’ yield, preceded a major spike in the FXS token’s price.Interestingly, many of such FXS rallies, apparently inspired by major FRAX adoption events, produce recurring patterns of trading and social activity that get detected by Cointelegraph Markets Pro’s algorithmic indicator, the VORTECS™ Score. This AI-driven tool is trained to sift through tokens’ historical performance data, looking for familiar combinations of variables such as price movement, trading volume and Twitter sentiment that have systematically preceded dramatic price movements.Green means goHere, for example, is the chart of FXS’ VORTECS™ Score vs. price from the week that FRAX was added to Convex Finance. The indicator flashed an ultra-high Score more than one full day ahead of the token’s powerful price spike.VORTECS™ Score (green/gray) vs. FXS price, Dec. 17 – 24. Source: Cointelegraph Markets ProScores above 80 conventionally indicate the algorithm’s solid confidence that the conditions around the assets are historically bullish, while those beyond 90 suggest extremely high confidence. In this case, on Dec. 20, with FXS’ price remaining largely flat, the token’s VORTECS™ Score exploded, reaching an impressive value of 96 (red circle in the chart). Thirty-two hours after the peak Score, FXS’ price shot up from $13.96 to $18.27 in just 18 hours.In the weeks that followed, FXS’ VORTECS™ Score peaks kept coming ahead of price spikes. Earlier this week, two streaks of Scores above 80 foreshadowed two phases of explosive price action, including the one that saw the asset hit a weekly high of $41.72.VORTECS™ Score (green/gray) vs. FXS price, Jan. 6 – 13. Source: Cointelegraph Markets ProNot many digital assets display high VORTECS™ Scores so frequently. Furthermore, CT Markets Pro’s internal research shows that tokens can widely vary in the degree to which historically favorable conditions anticipate their actual price movement. Apparently, what is happening in the case of recent FXS rallies is that the forces driving the waves of the token’s appreciation are similar, leading to a familiar arrangement of trading and social metrics that the VORTECS™ algorithm captures so well.Of course, the relationship between historical precedent and subsequent price action is not always this smooth. Yet, in many cases, this tool — capable of parsing years’ worth of assets’ performance data — can be massively useful for crypto traders.Cointelegraph is a publisher of financial information, not an investment adviser. 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 charts are correct at the time of writing or as otherwise specified. Live-tested strategies are not recommendations. Consult your financial adviser before making financial decisions.

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