We all want to find new cryptocurrency projects that show incredible gains… but how? Here we look at token settings for newly listed coins, as well as how to look for specific price movement after a quote.
A thread from the famous trader @MacnBTC caught the eye on Twitter. Indeed, the trader explains in detail his strategy to find lesser-known cryptocurrencies before they begin their bull cycle and post gains of at least x100.
Freshly Listed Cryptos
The first step to finding coins that can generate such large gains is to look at newly listed cryptocurrencies on Binance. This is due to three main reasons:
- Recently listed cryptos feature recent charts. There is therefore no general resistance when they exceed their initial quotation price.
- These newly listed coins often feature a protected release schedule. This means that for the first few months of trading at least, their early investors keep their tokens locked in, which drastically reduces the circulating supply.
- New narratives can easily be crafted with newly quoted coins, which greatly contributes to the ensuing price rise.
So, the first step in choosing a cryptocurrency project that could show a 100% increase is to look for newly listed coins.
Crypto token settings
The second step in finding these winning cryptos is an analysis of the token parameters, which in this case are as follows:
- A schedule for unlocking seed/private towers
- As we pointed out in the first section, cryptocurrencies with a locked acquisition schedule usually show significant upsides due to the absence of selling pressure. This was particularly noticeable with the GMT course, as all seed/private tower coins as well as advisors and teams were locked for almost a year.
- The price per token during seed/private rounds
- A large difference between the price during the first seed rounds and the quotation price represents a negative phenomenon, especially if a significant part of the offer is unblocked. This is because if the price of the tokens is several times higher than the price of the first seed rounds and if the investors’ tokens are released, they are likely to sell to cash in their gains and exert pressure from sale.
- Finally, the team behind the project and the investors also play an important role in the future course of the price. It is always desirable to invest in projects that have other investors known to be long-term holders.
Finally, the evolution of the price of a crypto after its listing is extremely important. Ideally, the chart should show the following:
- A gradual and see-saw decline after listing
- A bullish cross of the short-term moving averages (MA) soon after.
Both of these were visible in the course of the MATIC token. After its listing, the MATIC fell for a period of about 20 hours. Then, the price initiated a massive upside once its short (red) and long (black) MAs made a bullish crossover (green arrow).
Knowing that there is no resistance once the quote price is breached, Fibonacci levels are used to determine future resistance levels.
In the case of the MATIC, the 4.61 Fibonacci extension of the initial bullish move predicted the ensuing top almost perfectly. Therefore, this level could have served as an ideal take profit target for the first part of the upside move.
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We wish to give thanks to the author of this short article for this awesome content
How this crypto trader was able to generate x500 in earnings with a simple strategy – BeinCrypto
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