This key buying and selling algo noticed bullish altcoin setups at the same time as BTC worth fell
Last week has been challenging for crypto traders as the September 24 FUD-triggering crypto ban news from China wiped out much of the gains investors made earlier in the week. Between September 18 and 25, the top 100 altcoins lost up to 14.4% of their total value, while Bitcoin (BTC) lost 12.5%.
The number of altcoins with double-digit returns was also unusually low. Data from Markets Pro, Cointelegraph’s subscription-based data intelligence platform, shows that only eight of hundreds of assets tracked rose more than 10% against the US dollar.
While trading is an activity characterized by a steady flow of gains and losses, how can investors spot the coins early that are well positioned to weather the storm?
The top performers of a tough week
The table below lists the eight altcoins that have managed to generate robust returns even in the midst of the Red Sea that swept the market last week.
COTI continued its winning streak, bolstered by the recent release of the Coti Treasury whitepaper, the asset’s listing on Crypto.com and the expectation of a new stablecoin partnership with Cardano.
CELR’s momentum accelerated after the introduction of Celer Network’s cross-chain cBridge 2.0, which is designed to facilitate the transfer of digital funds between large blockchains.
The third best asset of the week, Trace (TRAC), is the native token of OriginTrail, a blockchain ecosystem and protocol that aims to improve global supply chains by providing an infrastructure for trusted data exchange. The token’s valuation has risen recently due to a number of bullish developments, such as the introduction of the OriginTrail-based SCAN Trusted Factory solution by the US home improvement company Home Depot.
TRAC and REN also achieved very high VORTECS ™ scores last week. The VORTECS ™ Score is a machine learning algorithm that compares historical and current market conditions surrounding crypto assets to help traders make more informed decisions.
The model takes into account a variety of quantitative indicators – including market outlook, price action, social sentiment, and trading activity – to generate a score that assesses whether current conditions for a coin are historically bullish, neutral, or bearish.
This is how it worked for TRAC and REN last week.
VORTECS ™ has seen the first signs of an outbreak
The VORTECS ™ model is optimized to recognize patterns of social and market activity that occurred consistently in the past 12 to 72 hours before the coin went up. A score of 80 or higher indicates that the observed conditions have a strong history of previous price increases.
TRAC price vs. VORTECS ™ score. Source: Cointelegraph Markets Pro
The price of TRAC was volatile throughout the week against mostly cheap VORTECS ™ scores – low until the mid-1970s. The high of 81 briefly flashed on late September 21 (red circle in graph), suggesting the model’s growing confidence that the patterns of market and social activity surrounding the coin have historically looked bullish.
Despite a decline that began shortly after the VORTECS ™ peak was registered, TRAC soon turned around and triggered a two-day rally from $ 0.37 to $ 0.56.
REN price vs. VORTECS ™ score. Source: Cointelegraph Markets Pro
The price of REN had steadily fallen in the first half of the week against the background of a number of very strong VORTECS ™ scores.
REN eventually bottomed at $ 0.70 before rising again, and shortly thereafter came the second installment of VORTECS ™ scores over 80 of the week. Savvy traders know that an asset with a VORTECS ™ Score that stays high for a long time – even if the price remains unchanged – can be an excellent opportunity for profit.
In fact, the REN price skyrocketed from $ 0.81 towards the end of September 23rd, peaking at $ 1.13 29 hours later.
Digital assets do not always behave in a similar way to what has been observed in the past, especially during market downturns.
After all, of last week’s top eight performers, only two coins produced familiar bullish patterns before their prices skyrocketed. However, the additional knowledge that the VORTECS ™ Score provides traders with can be indispensable in a situation where very few coins are expected to beat the ailing market.
Cointelegraph is a financial information publisher, not an investment advisor. We do not offer any personalized or individualized investment advice. Cryptocurrencies are volatile investments and carry significant risks, including the risk of permanent loss and total loss. Past performance is not an indication of future results. Illustrations and diagrams are correct at the time of preparation or as otherwise stated. Live-tested strategies are not recommendations. Consult your financial advisor before making any financial decisions.