When crypto traders win big, they often turn to Twitter to share the joy. They tend to do the same to share painful scam stories, discuss promising new assets, or share information and predictions on which projects may become the next big thing. Sometimes these waves of social attention can even create positive feedback loops whereby the tokens being talked about see their prices skyrocket for precisely that reason.
The volume of tweets that refer to a particular asset can indicate many different things. This month, the five tokens that saw the biggest month-over-month increases in daily tweet volume: LRC by Loopring, WILDEBEEST by NuCypher, Enjin Coin (ENJ), ANKR and The Sandbox’s (SAND), also saw some of the biggest monthly gains. This in itself is not surprising at all, since Assets that see high concentrations tend to attract the attention of the Twitter crowd.
What’s notable, though, is that in all five cases, the record-breaking tweet volume spikes were not actually recorded in response to the monthly highs, but before them. In other words, the extensive Twitter conversations around these coins anticipated price action rather than following it. How could traders spot the signs of this extraordinary social activity early?
Notice from the crowd
If you don’t follow just about everyone in the Crypto Twitter community, there are a few ways to reliably capture every spike in tweets about a particular asset. Subscribers to Markets Pro, Cointelegraph’s proprietary data intelligence platform, make it easy: a dedicated dashboard with five assets that are seeing an unusually high volume of tweets is usefully displayed in real time right on the dashboard.
Additionally, the volume of tweets is one of several metrics used to calculate the VORTECS ™ score, an algorithmic indicator that compares past market and social activity patterns around a digital asset with years of historical data performance to assess how optimistic the coin’s outlook is.
In the case of Twitter favorites of the month, a look at the raw Twitter data would suffice, as All of these coins appeared in Twitter’s Unusual Volume panel when its tweet volume peaked.
LRC / USD: a 744.44% increase in tweet volume followed by a monthly price change of + 350.79%
One of the ingredients of the monstrous LRC rally this month is the fact that layer two protocol continues to offer lower transaction fees. compared to their counterparts, which comes in handy amid exorbitant gas fees on the Ethereum network.
Having surpassed 3,000, the volume of daily tweets mentioning the project exceeded the monthly average by more than 740% on November 3 (the red circle in the chart) as the asset approached the local price peak at $ 1.54. After a brief correction, fueled by the influx of social care, LRC continued to climb further, topping $ 2 six days later.
NU / USD: A 598.87% increase in the volume of tweets caused a monthly price change of + 179.18%
No one knows for sure where the NU 10x-plus bomb came from on Oct 15, but he saw the coin jump from around $ 0.30 to over $ 3 in just a few hours. Some Twitter users attributed the rally to its listing on South Korean exchange Upbit, but something else is likely at stake. Most likely, people were just trying to figure out what was going on.
Regardless, Twitter’s unusual volume indicator started flashing just two hours after the rally, with the highest rate appearing shortly before the $ 3.17 high price. Interestingly, the social excitement around NU persisted for some time after the sharp price correction, starting to decline just one day after the price collapsed back to around $ 1.20.
ENJ / USD: A 354.32% increase in the volume of tweets accompanied by a monthly price change of + 90.35%
Enjin Coin emerged as one of the beneficiaries of the metaverse token wave triggered by the rebrand from Facebook to Meta in late October.
The discussion on Twitter about the blockchain gaming platform Enjin reached its climax on October 31 against a price of $ 2.51. while ENJ was cooling down after a parabolic rally. The flurry of Twitter mentions heralded the next stage of the action, taking the coin to the next high of $ 3.45.
ANKR / USD: A 329.08% increase in tweet volume supported a monthly price change of + 39.51%
ANKR put in a massive performance around the same time as metaverse assets soared, going from $ 0.081 on October 28 to $ 0.139 a week later.
As the token’s price briefly stabilized to take a breather amid the surge, Twitter numbers accelerated to 2,400 daily mentions. After that, the token’s price jumped one more to the monthly high recorded on November 3.
SAND / USD: a 328.12% increase in tweet volume was followed by a monthly price change of + 222.12%
Sandbox was another wonder of the metaverse, seeing the SAND token price skyrocket following the Facebook / Meta news.
SAND’s healthy social outlook manifested itself when your daily tweet volume more than tripled compared to the monthly average, reaching a record above 2.600 15 hours before a maximum price of $ 3.38 was recorded.
Of course, the abnormal volume of tweets that mention a certain asset is not in itself a recipe for an imminent price increase. Traders must delve into the real context of what is happening around the token to make an informed decision. However, receiving alerts about massive spikes in attention to particular assets can be incredibly helpful in focusing one’s analysis on the most likely candidates for a continued rally.
Cointelegraph is a financial information publisher, not an investment advisor. We do not provide personalized or individualized investment advice. Cryptocurrencies are volatile investments and carry significant risk, including the risk of permanent and total loss. Past performance is not indicative of future results. Figures and graphics are correct at the time of writing or as otherwise specified. Live tested strategies are not recommendations. Consult your financial advisor before making financial decisions.