AVAX tops the list for crypto predictability … but other tokens may surprise you

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You can’t predict the future, but you can learn from the past.

And some crypto tokens are much (much) more predictable than others, when you analyze their historical trading patterns.

In fact, five cryptocurrencies in particular showcased the kind of trading predictability that could give keen-eyed crypto traders a huge edge in the markets.

These five tokens all demonstrated one thing in common:

After the detection of strong bullish conditions, their average value increased after 24, 48 and 72 hours. After the detection of extreme bullish conditions, they also increased on average after 24, 48 and 72 hours. extreme flag was a surprising 10%

While this is a measure of past business activity and (of course) not a promise of future performance, it is remarkable to note that these tokens, led by Avalanche (AVAX), exhibit behaviors that consistently generate large gains, even like other tokens – including AAVE and Curve (CRV) – tend to * decrease * in value over similar time periods, and other tokens still show little correlation with trading conditions. historical trading.

Context of identifying predictability

If you’ve been following Cointelegraph for the past year or so, you’ve probably heard of the exclusive Markets Pro data intelligence platform and quantum style trading indicator called the VORTECS ™ Score.

In purely hypothetical automated tests, the metric generates a mind-boggling ROI that can reach tens of thousands of percent when compounded over several months.

However, when it comes to implementing historical precedent as a regular investor, knowing the individual habits of each crypto asset is more useful than marveling at the aggregate data. Here’s one way traders might tell which assets are most likely to follow familiar paths down the road to massive returns.

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Which story rhymes the most?

The idea behind the VORTECS ™ Score is to provide traders with an overview of the multidimensional patterns in the past performance data of crypto assets. The key principle behind the usefulness of the Score is that often individual tokens behave in recognizable ways the same in terms of business metrics and social sentiment … days before their prices explode. (or do not collapse). When spotted early, these regularities can inform trading decisions, although they are in no way predictive of price movements.

Average historical earnings

The graph shows twenty coins that have had the most instances of VORTECS ™ scores above 80 or 90, counted since the launch of the platform.

High scores indicate the algorithm’s confidence that the current outlook for the coin is historically bullish. A score of 90, although quite rare, expresses the algorithm’s confidence that prices have generally increased and with more determination when it has experienced similar trading conditions in the past.

The bars represent the average earnings after some time after reaching the highest score. For example, the green bar, marked 72/90 in the legend, represents the average earnings that the asset made 72 hours after reaching the score of 90; the orange bar shows the average yields 48 hours after reaching a VORTECS ™ score of 80.

Avalanche (AVAX) is perhaps the most obvious and consistent trade for crypto investors using historical analysis as part of their research. Not only are high scores directly correlated with price appreciation, but the gains have perfectly reinforced the algorithm’s thesis.

Score 80, Sell after 24 hours: Average gain 3%

Score 80, Sell after 48 hours: Average gain 6%

Score 80, Sell after 72 hours: Average gain 9%

Score 90, Sell after 24 hours: Average gain 12%

Score 90, Sell after 48 hours: Average gain 16%

Score 90, Sell after 72 hours: Average gain 28%

Some others are also very consistent, with bars very close to each other.

Axie Infinity (AXS) is a good example: 4% at 24/80, 7% at 48/80, 9% at 72/80.

Others recorded modest returns after hitting 80, but performed exceptionally well after hitting 90:

For example, Tellor (TRB) with average yields of 5% at 72 hours after reaching 80 and 17% at 72 hours after reaching 90.

Some bars even point below zero, marking chips that tended to lose value after high VORTECS ™ scores – however, these are vastly outnumbered.

The majority of crypto assets that cross the VORTECS ™ score of 80 see consistent appreciation over the next 24-72 hours, and often for a longer period.

What the chart suggests is that traders can be more confident when the VORTECS ™ score lights up on AXS, MATIC, AVAX, LUNA and TRB while being more cautious with AAVE or CRV.

The Markets Pro team continuously monitors the performance of individual assets as well as the score itself. A detailed breakdown of relevant data points is published every weekend in the VORTECS ™ weekly report to help subscribers get the most out of their membership.

Cointelegraph Markets Pro is available exclusively to members on a monthly basis at $ 99 per month, or annually with two free months included. It has a 14-day refund policy, to ensure it meets subscribers’ crypto trading and investment research needs, and members can cancel at any time.

Cointelegraph is a publisher of financial information, not an investment advisor. 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 does not represent future results. Figures and graphics are correct at time of writing or as otherwise specified. Strategies tested live are not recommendations. Consult your financial advisor before making any financial decisions.

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