Data & Metrics
Investing and trading require thorough research and dedicated time in order to produce consistent results. Sure, pretty much everyone is a genius in a bull market but the majority of gains can just as easily be erased when the market reverses. This has always been the reason why altcoin holders have always looked to offload at cycle peaks. This may however be changing due to a possible shift in cycle patterns. It is still a bit early to say with absolute certainty but it seems to be rather likely. One of the most trusted ways of analyzing the market is technical analysis. However, Crypto has an added benefit in the form of on-chain analysis.
These are pretty effective ways to gain a handle on what’s going on in the market. They are however not a guarantee and even the most skilled analysts get it wrong from time to time. Another important factor to always bear in mind is that manipulation is a very real threat and reality. Whales are basically using emotional intelligence in their approaches because they are aware of how their actions will be interpreted. The movement of coins by whales can ultimately adjust market sentiment. This is achieved without the adjustment of any fundamentals but rather the interpretations of their movements.
Knowing how the market will eventually respond to certain dynamics is key in identifying trends and even long-term investment opportunities.
Add To your Data The Writing On The Wall
Some months ago I published an article entitled, “The Signs That Pointed To Solana Eventually Becoming A Big Deal”. In this article, I explained the reasoning as to why I had a very clear indication that Solana would ultimately rise in prominence.
During the early days of FTX, the project formed a strong relationship with Binance, which they later u-turned on. This was one of the most important signs for me, as most projects will endeavor to leverage the Binance name in order to gain traction and rise to prominence. The move by FTX displayed that not only were they not that interested in riding the Binance wave but that FTX was actually challenging Binance for dominance. FTX were indeed aiming very high and they were choosing to build their DEX on Solana. Sam would need to have a lot of confidence in Solana if he was using it as the base layer to Serum as he challenged Binance for supremacy.
Understanding human behavior and in particular, the behavior of a person in Sam Bankman-Fried’s position gave a clear indication that he knew something. Secondly, a man with such great ambition would not build the Serum DEX on just any blockchain. This is a fairly good example of how intelligence outside of the traditional sources can be very helpful in identifying hidden gems.
You can imagine that when you obtain confluence by obtaining additional data, this can be a very lucrative approach.
Another Recent Example
We recently experienced monster moves from AVAX, LUNA, and other layer 1s. Something that I noticed caused me to become quite bullish on FTM. Fantom is a relatively high-quality layer 1 that seemed to somehow get ignored in this recent bull run. This to me was an obvious opportunity. Surely, once the market realizes this, FTM would be next to experience some significant upside.
I posted the following post on Noise.cash approximately 10 days ago, informing my subs that I was now buying FTM at approximately $1.35. Today, as I am writing this article, FTM is trading at $3.10!
A Useful Alternative
In this particular instance, relying on emotional intelligence as the main indicator worked out really well. This is a rise of 130% in a little over a week, in a time when the market isn’t really doing much. Sometimes this approach can be quite intuitive and has the ability to uncover what traditional analysis is unable to. I am a thinker, so I guess I am well suited to this approach. However, it may be quite useful to those who have significant knowledge of the Crypto space, as they have a wealth of data to process.
Thanks for the visit, see you in the next one!