The past performance of digital assets is not a guarantee of future price movement. No two situations are absolutely identical in the cryptocurrency market, so even historically similar patterns of token behavior can be followed by completely different price action charts.
However, the individual history of the price movement of crypto assets is often harmonious, which gives those who can prepare this history a huge advantage over other traders. More importantly, some symbols are more likely than others to show repetitive behavior, making their bullish settings more recognizable early on.
Cointelegraph Markets Pro, a subscription-based data intelligence platform whose function is to look for regularities in past trading behavior of crypto assets and alert traders to historically bullish conditions around individual assets, has been in operation for almost a full year now. Based on one-year performance data of the tokens, below are the assets that have repeatedly shown historically bullish trading conditions, along with subsequent price dynamics.
The chart shows the top 20 digital assets by total number of instances when they reached a VORTECS™ score of 80. The VORTECS™ score is an algorithm that takes into account a range of variables about each currency – including market expectations, price action, social sentiment, and trading activity – to assess what If the current conditions are historically bullish, neutral or bearish. Conventionally, VORTECS™ scores over 80 are confidently bullish, while scores of 90 and above indicate extreme confidence for the model in a very positive outlook on the asset.
Although metaverse fiat coins take first and three places on this list — Axie Infinity Shards (AXS) and Decentraland’s SAND, respectively — not a single digital asset segment dominates the chart, with Layer 1 protocol and Decentralized Finance (DeFi) tokens also represented. It is broadly in the top 20. From this data it appears that the probability of a token displaying historically favorable trading patterns does not depend on its asset class.
For example, AXS has exceeded a score of 80 on 75 occasions, while the AVAX Layer 1 protocol has scored 42 historically positive outlooks, and the DeFi COTI token has received 40 days of high VORTECS™.
The second graph displays the average gains made by top performers in VORTECS™ over 24, 48, and 96 hours after achieving scores of 80 and 90. There are a few bars that indicate below zero, but the majority show strong positive returns, which It means that most assets are consistently overvalued after showing strong bullish conditions. Here is AVAX, one of the top performers:
24 hours after score 80: average gain 2.5%
48 hours after score 80: average gain 5.3%
96 hours after score 80: mean gain 10.4%
24 hours after score 90: average gain 10.8%
48 hours after degree 90: average gain 16.0%
96 hours after degree 90: median gain 19.1%
Other high scorers boast more impressive returns in certain time frames. For example, Terra’s LUNA performed exceptionally well after 48 and 96 hours of achieving a VORTECS™ 90 score, achieving an average of 31.7% and 40.9%, respectively.
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Some assets have been given less consistent behavior, with average return bars pointing above and below zero, while others such as AAVE, Loopring’s LRC, and Origin protocol’s OGN tend to lose value after historically bullish patterns flash.
However, most of the tokens are performing very positively, outperforming the market by a wide margin. This trend has been observed across hundreds of VORTECS™ recordings and remains strong over a 12 month period which included periods of bulls, bears and sideways market movement. This may not be a universal law, but it is clear that there is a large group of well-performing crypto-tokens that often have a harmonious history, which pleases savvy traders.
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.