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Spotting the red flags: 3 times crypto traders were warned of a price drop | Bankless


Everybody who’s into cryptocurrency trading loves a bull market. However, most of us know that every green wave inevitably gives in to a red one. Experienced traders are aware these phases of the market cycle can come with great profit opportunities. Learning to forecast a crypto’s upward price trajectory as well as corrections and downturns can be helpful when deciding on when to close a position and take profit or stop loss, CoinTelegraph reminds.

The power of intelligence tools

Intelligence tools can help predict a price drop, so you don’t have to rely on common sense. We know that isn’t so common. Tools like the VORTECS™ Score examine years of statistics to identify whether the combination of social and market conditions around a token reflects those that preceded major price shifts in the past, upward or downward.

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A high score indicates a bullish trend, while scores below 30 show an impending price drop. Here are three times traders were warned that their assets were about to lose value.

1. Overheated Dogecoin

Dogecoin’s VORTECS score passed 80 mid-April this year. At that time, the price was still flat at around $0.073. The model picked up on indicators like increasing trading volume and celebrity tweets. The price went up shortly thereafter – almost double to $0.14. Before reached a peak, though, the score dipped into red below 30. In several hours, an adjustment to $0.11 manifested.

2. COTI succumbed to inevitable correction

After rising from $0.29 to $0.45 within an hour at the end of August, the price of COTI began to undergo adjustment. It dipped to $0.37, then rebounded to $0.42. That’s when the VORTECS algorithm picked up on similarities between past COTI price adjustments and observed conditions, going red as COTI’s price continued to increase. Less than three hours later, the asset reversed on gains, dropping down to $0.35.

3. The imminent decline of NEAR predicted

At the beginning of September, the price of NEAR Protocol almost doubled in three days. Traders began to wonder where NEAR would go next. Shortly after the price peak, the VORTECS score dropped down to below 30, indicating an imminent decline as opposed to further rallying. This was quick to follow. When the score went red, NEAR’s price was at around $11.00 and rising. Just a day later, it had lost $2.00.

There are many tools that can be helpful in making accurate price predictions, but don’t be over-reliant on these. Never invest more in any token than you can afford to lose.



Read More:Spotting the red flags: 3 times crypto traders were warned of a price drop | Bankless