Combining data-driven insight with solid contextual knowledge can spell massive gains for smart traders.
The mixed crypto market that took hold starting late last year does not offer as many profit opportunities as the blooming altcoin season that came before it. There are way fewer winners than in bull times, and the thorough research needed to single them out can become a full-time job. Luckily, there are ways to outsource some of this effort.
The history of digital assets’ price action doesn’t hold keys to their future, but it can offer numerous valuable cues. Complex patterns of trading and social sentiment metrics that power a token’s dramatic price pumps often recur, and savvy traders can use them to anticipate price moves.
One of the tools that can read the history of assets and turn it into actionable insight is the VORTECS™ Score. Exclusively available to the subscribers of Cointelegraph Markets Pro, this machine learning tool shows whether the present combination of market and social metrics for each tracked coin is historically bullish, bearish or neutral.
The higher the Score, the more bullish the token’s outlook for the next 12 to 72 hours. Scores of 80 and above are considered confidently bullish, meaning that the current trading conditions look very similar to those that showed up ahead of huge price spikes in the past.
Here is how it worked out with some of this past week’s top-performing digital assets.
XHV: The offshore bank of crypto goes to the moon
Haven Protocol, a Monero fork that markets itself as an “offshore bank” without a bank, saw its Haven (XHV) cryptocurrency experience a major price pump on the news of Western sanctions against Russia and the general narrative of financial privacy gaining momentum. Haven is a privacy-focused “ecosystem of untraceable assets” that allows for the anonymous exchange of assets.
The patterns of trading and social activity shaping up around the token began to look historically bullish on March 10 as XHV’s VORTECS™ Score peaked at 88 against a price of $2.37. Nineteen hours later, the asset’s price pumped, reaching $3.73 in just 11 hours.
RUNE: Robust fundamentals produce a bullish pattern
THORChain’s RUNE sported strong fundamentals rolling into the week. The token’s first upside came on March 10 in response to the network activating synthetic assets, with RUNE marching all the way up to a local high at $5.52. Shortly thereafter, its VORTECS™ Score hit 84, suggesting that the best was yet to come, according to historical precedent.
Sure enough, the recurring pattern didn’t lie: The rally continued to unfold further, boosted by the news that THORChain would launch its new Thorfinance protocol in addition to a native stablecoin. RUNE’s price embarked on a steep upward trajectory some 40 hours after the VORTECS™ peak was registered, with its price leaping from $5.64 to $7.94 over the rest of the week.
REQ: Strong trading conditions foreshadow a flash rally
REQ is the native token of Request Network, a decentralized payment system built on Ethereum. The asset’s price spiked on March 13 and 14 in a two-legged rally following the addition of support for Jarvis Network’s euro-pegged stablecoin, jEUR. The favorable news environment contributed to a bullish arrangement of trading metrics and social sentiment indicators, captured by a peak VORTECS™ Score of 82 lighting up on March 14. Eleven hours later, the favorable outlook materialized in a pump from $0.20 to $0.25 in under four hours.
No algorithmic trading indicator can present a comprehensive picture of what is going on with a token and where its price is poised to move next. However, combining the insight from a data-powered tool like the VORTECS™ Score with analysis of fundamentals and the news environment can help traders identify big winners hours before their powerful upsides kick in.
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.