In cryptocurrency trading, we often see entire sectors moving in tandem. DeFi coins may all be curving upwards together, while metaverse tokens have soared on news that Facebook is getting a facelift.
But this week’s batch of the best cryptocurrencies have very little in common… with the exception of one trading indicator that lit up with pulsing green neon letters before their prices headed higher.
Today we are looking at:
- Polygon (MATIC) – Layer 2 Scaling Solution for Ethereum
- Aave (fictionally, AAVE) – Decentralized Finance (DeFi) Asset
- Voyager (VGX) – Crypto Trading Platform
- Koinos (KOIN) – A sense-based foundational blockchain built for scalability
- Linear (LINA) – Multi-chain asset protocol
They’ve all made big gains over the past month, and despite their differences, they have one thing in common.
Each of them achieved a VORTECS™ score in excess of 90 before reaching their maximum price levels.
In fact, all of these symbols showed patterns of trading and social behavior Remarkably Similar to the conditions in the past that preceded the gatherings. Once these very strong trading conditions were discovered, most of these cryptocurrencies entered into virtuous cycles as price dynamics led to increased trading volumes and tweets, which in turn led to the next stage of the bull run.
Was there a chance for merchants to hop on these early moon-bound shuttles?
A sign of intense confidence
The indicator that screams extremely bullish conditions is called VORTECS™ Score, and it is a tool available via Cointelegraph’s subscription-based data information platform, Markets Pro.
Its function is to compare current trading conditions and sentiment with historically similar situations, and to alert traders when bullish patterns are detected. The direct testing of the VORTECS algorithm has been going on for more than ten months.
A VORTECS™ result above 80 is considered bullish with confidence. On average, there are 30 to 50 instances per week of assets that cross the 80-score threshold.
However, scores of 90 or higher are rare. In an average week, there are usually no more than 4-5 cases of such degrees, and sometimes a whole week can go without 90 at once.
These very high scores indicate the algorithm’s strong confidence that the conditions observed are similar to those that preceded the asset’s excellent price performance in the past. As mentioned earlier, scores above 90 sometimes precede a price spike that can last for several days.
Here’s how it worked with some of last month’s top VORTECS™ assets.
KOIN number: +100% after peak score
KOIN, one of the assets whose first VORTECS™ points were calculated on November 5th, was off to a great start right away. The asset grade touched the 90 mark several hours after it appeared at 22 cents.
Within a day, it reached a high of $0.44, an increase of 100%. The pump accounted for an additional 432% of trading volume and 221% of the usual level of tweets.
The particularly stunning results of the Koinos price hike event are likely due in part to their low market value, which was just $20 million prior to the surge in prices.
Matic: +35% after the peak of Vortex Points
MATIC’s excellent run this month was fueled by an increase in the number of active Polygon titles, as well as the launch of projects on the Polygon Network. The VORTECS™ peak of the asset of 94.2 came on October 16 (red circle in the chart), when the asset was trading at $1.56.
After the peak, the price of MATIC did not rise immediately, as the favorable conditions were not fully realized until about two weeks later. However, the maximum price increase recorded after the benchmark score was 35%, with a 6.68% increase in volume and an 11.08% increase in tweets citing the origin.
AAVE: +11% after peak score
AAVE’s high water mark came on October 18th when VORTECS™ flashed a score of 90.8. At that moment, the DeFi token was changed for $304.
A very high result for AAVE predicted a rally that continued for another 11 days, culminating in the $338 price recorded on October 29. The gains in trading and tweet volume were even more impressive: 488% and 118%, respectively.
LINA: +13.4% after peak degree
LINA recorded the most bullish historical forecast on October 11 when VORTECS™ score reached 90.2 for $0.052.
The next phase of the price action saw the price rise to $0.059 over seven days, accompanied by a staggering 439% increase in trading volume and 200% surge in tweets.
VGX: +3.7% after peak degree
Voyager Token (VGX) flashed the highest VORTECS™ result of the month (91.9) late from its massive rise from $2.11 to $3.05.
The asset’s price continued to hover above $3 for the next four days, buoyed by a 42.89% increase in volume and a much more intense 10.19% conversation on Twitter following a historically bullish outlook. VGX’s momentum faded somewhat in early November, however strong fundamentals could point to an imminent comeback.
We may conclude from the above analysis that looking at tokens that have reached a VORTECS™ score of 80 has proven to be an effective strategy for traders looking to identify a group of assets with a good chance of performing well within the next few days.
Focusing on those few beyond 90 pips may serve Markets Pro members who prefer to work with higher confidence levels and longer time frames.
Cointelegraph is a financial information publisher, not an investment advisor. We do not provide personal or individual investment advice. Cryptocurrencies are volatile investments and involve significant risks including the risk of permanent and complete loss. Past performance is not indicative of future results. Figures and graphs are correct at the time of writing or as otherwise specified. Directly tested strategies are not recommendations. Consult your financial advisor before making financial decisions.
