VGX is the native token of Voyager, a cryptocurrency dealer, and the asset is designed to generate staking rewards for its holders in addition to enhance their yield earnings on different digital property.
Over the past 30 days, the asset delivered much more worth because it has greater than doubled its worth towards america greenback and gained 46% over the resurging Bitcoin (BTC).
What induced the coin’s worth to soar, and was there a approach to anticipate its rally early on?
Breaking information, acquainted market patterns
VGX’s August worth surge was an anticipated byproduct of bullish information popping out of the Voyager ecosystem all through August. On Aug. 2, Voyager Digital introduced the acquisition of funds agency Coinify, a transfer geared toward increasing the platform’s infrastructure for cross-border transactions. On the time, VGX had been buying and selling at round $2.30.
Concurrently, Voyager rolled out a technological replace: its VGX 2.0 portal for token swaps and staking. Fueled by this one-two punch, the value of Voyager Token launched into a multi-leg rally that might final — barring temporary intervals of correction — for nearly three weeks and culminated within the worth hitting a excessive of $6.56 on Aug. 19.
With such lengthy upward runs, one puzzle for merchants to unravel is whether or not every new worth recoil is the top of the feast or whether or not there’s nonetheless sufficient fodder for the hike to proceed. At this level, historic knowledge can come in useful.
Traditionally talking, VGX will not be new to lengthy, dramatic rallies. From early January to late February, the token rose from a couple of cents to an all-time excessive above $7. This streak generated sufficient knowledge on worth motion, buying and selling exercise and social sentiment across the coin for the VORTECS™ Rating — a man-made intelligence-driven instrument accessible to Cointelegraph Market’s Professional customers — to develop into proficient in assessing VGX’s market outlook.
Forward of the value curve
VORTECS™ Rating is an algorithm that compares historic and present market situations round crypto property to serve merchants actionable insights. The mannequin considers a number of indicators — together with market outlook, worth motion, social sentiment and buying and selling exercise — to generate a rating that assesses whether or not the current situations are traditionally bullish, impartial or bearish for a coin.
Throughout VGX’s August run, the indicator constantly lit up forward of every new leg of the coin’s lengthy rally, signaling that, judging from historic precedent, the market and social situations are ripe for an additional dramatic worth enhance.
As seen within the chart, dark-green VORTECS™ Rating peaks, which correspond to scores above 80 and mark the mannequin’s excessive confidence in favorability of the noticed situations, confirmed up on Aug. 4 and Aug. 8 forward of VGX’s upside phases.
Extra just lately, On Aug. 16, the token’s VORTECS™ Rating went from inexperienced to darkish inexperienced (crimson circle within the graph). The excessive rating continued whilst the value briefly went down. It was not till 42 hours later that the favorable mixture of market and social exercise across the coin detected by the VORTECS™ algorithm materialized in a flash rally. VGX’s worth virtually doubled, exploding from $3.33 to $6.61 in simply 12 hours; nonetheless, it started to swing wildly shortly thereafter.
VGX is one among Cointelegraph Markets Professional’s high property by the all-time variety of days when its VORTECS™ Rating hit 80. The coin recorded 43 high-scoring days, trailing solely AXS (52) and RUNE (72) because the platform launched in early 2021.
For 28 of those 43 days, the asset noticed a minimum of a 3% appreciation inside 72 hours from hitting the benchmark rating; on 23 events, the positive aspects have been 5% or extra. On 19 events, the value of VGX rose by 10% or extra inside 72 hours after reaching the VORTECS™ Rating of 80. And on common, the asset delivered 3.3% positive aspects 24 hours after reaching the rating, 4.3% after 48 hours, and 5% after 72 hours.
Whereas the VORTECS™ Rating will not be a crystal ball telling buyers when to go lengthy or quick, it may well present an actionable indication of traditionally bullish or bearish situations for a selected coin — data that, as VGX’s instance reveals, can doubtlessly be profitably integrated right into a buying and selling technique.
Cointelegraph is a writer of economic data, not an funding adviser. We don’t present personalised or individualized funding recommendation. Cryptocurrencies are risky investments and carry vital threat together with the danger of everlasting and whole loss. Previous efficiency will not be indicative of future outcomes. Figures and charts are right on the time of writing or as in any other case specified. Dwell-tested methods are usually not suggestions. Seek the advice of your monetary advisor earlier than making monetary selections.