Overheated DOGE: 5 times crypto traders were warned before their assets tanked
Everybody loves a crypto bull marketplace, but every dark-green wave inevitably gives manner to periods of sideways or downward movement.
Skilled traders know that these phases of the market place wheel can be rife with turn a profit opportunities, also. Anticipating not only a digital nugget's upward price movements, but downturns and corrections can be useful when deciding on when to exit a position and lock in gains, besides helping to add together toprofits by shorting crypto assets whose prices decline.
In addition to a keen eye and mutual sense, anticipating price drops can be aided by data intelligence tools. Ane AI-driven indicator that can assist investors see the signs of an upcoming dip early on is the VORTECS™ Score, exclusively available to the members of Cointelegraph Markets Pro.
Its job is to sift through years' worth of historical information and identify whether the combination of market and social conditions around each asset looks similar those that preceded sharp upward or downward price action in the past.
At whatever given moment, a cryptocurrency token'due south loftier VORTECS™ Score means that its outlook is historically bullish; only low scores below 30 signal that in the by, the observed patterns were frequently followed by toll drops.
Red VORTECS™ Scores are much rarer than dark-green ones. The most common scenario where such scores can exist observed is when crypto assets see flash rallies, become overbought, and then come across massive corrections.
Here are five conspicuous instances of red VORTECS™ Scores flashing on crypto assets before their prices tanked.
DOGE: Memecoin gets overheated
VORTECS™ Score (green/ruddy) vs. DOGE price, Apr. eight – 15. Source: Cointelegraph Markets Pro
Dogecoin (DOGE) presented an instance of very high and very low VORTECS™ Scores following each other closely in the week of Apr. 8.
The asset's score went higher up 80 on the morning time of Apr. 13, when the price bend was even so apartment at effectually $0.073 (first carmine circle). Apparently, the model has sensed a familiar organization of celebrity tweets and rise trading volume. Less than 12 hours later, the cost line followed suit, pumping all the way to $0.141.
Even before the toll reached its elevation value, still, the algorithm signaled that historically Dogecoin's rallies were followed by rebounds, equally the VORTECS™ Score dipped into the blood-red area below 30. A correction to $0.110 followed in several hours.
While the VORTECS™ Score is not designed to tell investors when to become long or short, it can provide a useful indication of historically bullish or bearish conditions for a particular nugget — information that tin can exist profitably incorporated into a trading strategy.
COTI: Massive spike, difficult comedown
VORTECS™ Score (green/ruby) vs. COTI price, Aug. 21 – 27. Source: Cointelegraph Markets Pro
Post-obit a precipitous hike from $0.29 to $0.45 within an hour that occurred on Aug. 26, the price of COTI began to succumb to a correction.
It quickly dropped to $0.37 and then attempted to gain upside traction again as information technology rose to $0.42.
At this point, the VORTECS™ algorithm recognized similarities betwixt the observed weather condition and COTI's by price corrections, lighting up a red score (red circle in the graph) when the price was withal on its way upwardly. The flash was well-placed, within two hours, COTI reversed its form and fell dorsum to around $0.35.
NEAR: A dip or second leg up?
VORTECS™ Score (green/ruby-red) vs. NEAR toll, Sept. five – 12. Source: Cointelegraph Markets Pro
Between Sept. seven and 9, NEAR Protocol soared from $6.00 to $11.58 inside iii days. The question on all crypto traders' minds was: Where will Nigh go next?
Several hours after the price height, the token's VORTECS™ Score dipped below 30 (red circumvolve in the graph), informing Markets Pro subscribers that historical precedent suggested an imminent pass up rather than another leg of the rally.
Well-nigh'due south price was at around $11.00 and still going upwardly when its score flashed cerise; 36 hours later, it was downward to $ix.00
NMR: Red Score at a price peak
VORTECS™ Score (greenish/red) vs. NMR price, April. two – 8. Source: Cointelegraph Markets Pro
Numeraire (NMR) was doing slap-up on Apr four and v, and its price was withal headed toward the peak of $78.07 when its VORTECS™ Score dropped beneath thirty (red circumvolve in the graph). This suggested that in the past NMR's like rallies were followed past the price cooling off speedily.
Sure plenty, the correction kicked in in less than two hours later on the lowest Score, NMR's price sliding back to effectually $63.00 within the post-obit two days.
STX: Dark-green before price rises, ruby-red before it drops
VORTECS™ Score (green/cherry-red) vs. STX price, Oct. seven – 14. Source: Cointelegraph Markets Pro
In the week of Oct. eight, Stacks (STX) managed to light up both an ultra-low and ultra-high VORTECS™ Scores, all within two consecutive days. On Oct. 9-11, STX had seen a strong rally from $1.44 to $2.29, after which the token'southward price began to decline.
At that point, the VORTECS™ algorithm recognized a combination of factors that in the past preceded extended corrections, flashing a ruddy score (offset circle in the chart). Indeed, STX soon embarked on a downward trajectory for the following 30 hours, dipping all the mode back to $ane.86.
However, in the middle of the pullback, the money's VORTECS™ Score went up sharply, reaching a loftier of 88 confronting a still-failing price. Apparently, market and social weather around the money flipped bullish again as in the past similar massive corrections were followed by even greater upsides.
Sure enough, 16 hours afterwards the peak VORTECS™ Score of the week had been registered, STX's rally resumed toward the calendar week's high price at $2.39.
Cointelegraph Markets Pro's VORTECS™ Score is available to members hither.
Disclaimer. Cointelegraph is a publisher of financial information, non an investment adviser. We do not provide personalized or individualized investment advice. Cryptocurrencies are volatile investments and bear significant adventure including the risk of permanent and total loss. By performance is non indicative of future results. Figures and charts are correct at the time of writing or every bit otherwise specified. Live-tested strategies are not recommendations. Consult your fiscal advisor before making financial decisions.
Source: https://cointelegraph.com/news/overheated-doge-5-times-crypto-traders-were-warned-before-their-assets-tanked
Posted by: jacksonnoreopme.blogspot.com
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