This indicator flashed bullish previous to Voyager’s (VGX) 200% rally
VGX is the native token of Voyager, a cryptocurrency dealer, and the asset is designed to generate staking rewards for its holders in addition to enhance their yield earnings on different digital belongings.
Over the final 30 days, the asset delivered much more worth because it has greater than doubled its value towards the United States greenback and gained 46% over the resurging Bitcoin (BTC).
What brought on the coin’s value to soar, and was there a strategy to anticipate its rally early on?
Breaking information, acquainted market patterns
VGX’s August value surge was an anticipated byproduct of bullish information popping out of the Voyager ecosystem all through August. On Aug. 2, Voyager Digital introduced the acquisition of funds agency Coinify, a transfer geared toward increasing the platform’s infrastructure for cross-border transactions. At the time, VGX had been buying and selling at round $2.30.
Simultaneously, Voyager rolled out a technological replace: its VGX 2.0 portal for token swaps and staking. Fueled by this one-two punch, the worth of Voyager Token launched into a multi-leg rally that will final — barring transient intervals of correction — for nearly three weeks and culminated within the value hitting a excessive of $6.56 on Aug. 19.
With such lengthy upward runs, one puzzle for merchants to resolve is whether or not every new value recoil is the tip of the feast or whether or not there’s nonetheless sufficient fodder for the hike to proceed. At this level, historic knowledge can turn out to be useful.
Historically talking, VGX will not be new to lengthy, dramatic rallies. From early January to late February, the token rose from a number of cents to an all-time excessive above $7. This streak generated sufficient knowledge on value motion, buying and selling exercise and social sentiment across the coin for the VORTECS™ Score — a man-made intelligence-driven software obtainable to Cointelegraph Market’s Pro customers — to develop into proficient in assessing VGX’s market outlook.
Ahead of the worth curve
VORTECS™ Score is an algorithm that compares historic and present market circumstances round crypto belongings to serve merchants actionable insights. The mannequin considers a number of indicators — together with market outlook, value motion, social sentiment and buying and selling exercise — to generate a rating that assesses whether or not the current circumstances are traditionally bullish, impartial or bearish for a coin.
During VGX’s August run, the indicator constantly lit up forward of every new leg of the coin’s lengthy rally, signaling that, judging from historic precedent, the market and social circumstances are ripe for an extra dramatic value enhance.
As seen within the chart, dark-green VORTECS™ Score peaks, which correspond to scores above 80 and mark the mannequin’s excessive confidence in favorability of the noticed circumstances, confirmed up on Aug. 4 and Aug. 8 forward of VGX’s upside phases.
More lately, On Aug. 16, the token’s VORTECS™ Score went from inexperienced to darkish inexperienced (crimson circle within the graph). The excessive rating persevered at the same time as the worth briefly went down. It was not till 42 hours later that the favorable mixture of market and social exercise across the coin detected by the VORTECS™ algorithm materialized in a flash rally. VGX’s value virtually doubled, exploding from $3.33 to $6.61 in simply 12 hours; nonetheless, it started to swing wildly shortly thereafter.
VGX is one in every of Cointelegraph Markets Pro’s high belongings by the all-time variety of days when its VORTECS™ Score hit 80. The coin recorded 43 high-scoring days, trailing solely AXS (52) and RUNE (72) for the reason that platform launched in early 2021.
For 28 of those 43 days, the asset noticed at the very least a 3% appreciation inside 72 hours from hitting the benchmark rating; on 23 events, the beneficial properties have been 5% or extra. On 19 events, the worth of VGX rose by 10% or extra inside 72 hours after reaching the VORTECS™ Score of 80. And on common, the asset delivered 3.3% beneficial properties 24 hours after reaching the rating, 4.3% after 48 hours, and 5% after 72 hours.
While the VORTECS™ Score will not be a crystal ball telling traders when to go lengthy or brief, it might probably present an actionable indication of traditionally bullish or bearish circumstances for a selected coin — data that, as VGX’s instance exhibits, can probably be profitably included right into a buying and selling technique.
Cointelegraph is a writer of economic data, not an funding adviser. We don’t present personalised or individualized funding recommendation. Cryptocurrencies are risky investments and carry important danger together with the chance of everlasting and complete loss. Past efficiency will not be indicative of future outcomes. Figures and charts are right on the time of writing or as in any other case specified. Live-tested methods usually are not suggestions. Consult your monetary advisor earlier than making monetary selections.