Each altcoin’s price is always made up of two parts. The coin’s own features include, among other things, fundamentals, investor sentiment toward the asset, liquidity, and trading volume. Bitcoin‘s performance is another powerful feature that frequently renders any altcoin-specific dynamics useless.
Whether you like it or not, when the king of cryptocurrencies climbs, there’s opportunity for the shitcoins to punch well beyond their weight. Even the most resilient alts can take a proportional impact when BTC falls. It’s a matter of figuring out which is which.
Many crypto traders are undeterred by drops in the value of their holdings in US dollars because they trade almost solely in contrast to Bitcoin on major exchanges, where the liquidity of the altcoin / BTC pair might be more appealing than the similar alt / stablecoin pair.
But it’s all interconnected, right?
While the circumstances of currencies may appear to be immaterial given Bitcoin‘s enormous effect, they do make a difference. When things are optimistic, assets with a positive outlook are generally among the top gainers, and when a market-wide rectificationis there, they can improveharder and faster than the others of the altcoin group, including Bitcoin itself.
So, when everything is a bloody red, how do you discern certain coins’ market situations are healthier than others? The VORTECS score, an analytical method that compares historical market dynamics around each currency to current market conditions, can provide some insight.Each asset’s VORTECS score, which is only available to Coin telegraph Markets Pro users, reveals whether the current combination of the coin’s social and market indicators happen to befactuallybearish, bullish, or neutral.
Here are a few examples from recently. When Bitcoin fell below $30K on Tuesday as a result of adverse news from China, stable coins were the only type of digital asset that didn’t fall into the red.
BTC, on the other hand, recovered most of its losses during the next 24 hours, rising beyond $33K. Not all cryptocurrencies quickly followed suit, but many of those that did were boosted by historically favourable individual conditions captured by the VORTECS indicator hours before the bearish trend reversed.
PARSIQ (PRQ) Analysis
24-hour price change: +18.83% vs. USD, +2.21% vs. BTC
PRQ had a tough week, with its price dropping from $0.88 on June 17 to $0.56 on June 22, right before the Bitcoin-induced market-wide crash. It subsequently dropped even lower to $0.35.
For much of the week, the coin’s VORTECS score line has been yellow (neutral), It began to pick up as the price dropped, implying that the coin’s social and market conditions were becoming increasingly comparable to those seen in the past, which were typically followed by big price gains within 12 to 72 hours. If and when Bitcoin-motivated macro forces permissible, the coin was poised for a breakout.
With BTC’s late-June 22 about-face, the door appeared clear for fundamentally strong cryptocurrencies to recover. Although the score had been trending upwards for several hours, PRQ’s VORTECS score peaked at 86 (red circle in the graph) immediately after the negative trend reversed, midway through the coin’s surge from $0.35 to $0.55.
Solana (SOL) Analysis
24-hour price change: +26.36% vs. USD +12.96% vs. BTC
Although SOL’s VORTECS score did not reach the psychologically significant level of 80 this week, it has continuously been in the upper 70s, reflecting the model’s reasonable high confidence in the coin’s positive future.
VORTECS dynamics remained strong even when its price began to fall along with the rest of the market: In fact, the lowest price ($21.41, first red box) matched the highest rating (77, red circle). According to historical precedence, the coin was on the verge of a strong comeback.
SOL was one of the greatest winners of the day when the tide shifted, earning 26 percent versus the dollar and nearly 13 percent against Bitcoin.
Enjin Coin (ENJ) Analysis
24-hour price change: +18.73% vs. USD, +7.30% vs. BTC
Enjin’s VORTECS score increased, similar to PARSIQ’s, when the crypto market monitored Bitcoin into a tailspin. It spiked to 79 early on June 22 (red circle) and stayed in the green zone for the duration of the flash crash. As soon as the correction ended, the price of ENJ soared from 79 cents to $1.04 a share.
Cointelegraph is a financial information publication, not a financial advisor. Specialised or personalised investment advice is not offered. Cryptocurrencies happen to be volatile investments that come with a lot of risk, including the possibility of entire and irreversible loss. Past achievement is not a predictor of future outcomes. Figures and charts are accurate as of the date of publication or as otherwise stated. Strategies that have been put to the test in real life are not recommendations. Before making any financial decisions, consult with your financial advisor.