When it comes to crypto trading, it’s not uncommon for investors to resort to social media to express their excitement about their recent gains.
It has been their practice in the past to relate stories of their own devastation, discuss prospective new assets, and anticipate which initiatives will be the next big thing.
Increases in social attention can result in positive feedback loops, in which the value of the most talked-about tokens rises as a result of the attention they are receiving.
A good source for crypto news
The amount of times a token is discussed on Twitter may offer a great deal of information about the asset in question.
The daily tweet volume of NuCypher NU, Loopring’s LRC Enjin, Coin’s ENJ, ANKR, and The Sandbox’s (SAND) SAND all increased significantly compared to the previous month, as did the daily tweet volume of Loopring’s LRC Enjin.
Due to the fact that Twitter users are attracted to assets that are seeing significant price increases, this isn’t surprising.
Even more amazing is that in each of the five incidents, record-breaking tweet volume spikes occurred before monthly price highs, further demonstrating the power of timing.
While the numerous Twitter conversations about these coins were reacting to price fluctuations, they were actually predicting them. How would traders be able to recognize the early indicators of this abnormal social behavior in the marketplace?
A crowd alert
If you don’t follow everyone on Crypto Twitter, it can be tough to observe an increase in tweets about a certain token.
VORTECSTM Score, an algorithmic indicator that blends market and social activity patterns with years’ worth of historical data performance in order to determine how strong a coin’s prognosis is, includes tweet volume as one of a number of factors, including market and social activity patterns.
Image courtesy of Cointelegraph News/YouTube
Source: https://bitcoinerx.com/blockchain/traders-can-use-twitter-to-predict-changes-in-the-value-of-altcoins/
