Incr.supply+incr.price
Alert indicator to identify an increased risk of price drops following a token distribution
Alert indicator created by CryptoScores to identify an increased risk of price drops following a token distribution.
It identifies cases of unusual increases in the number of tokens exceeding 3%, accompanied by a price increase of at least 20%.
An alert message is then displayed: “Warning: a price increase of ...% over 14 days has been followed by an increase in the circulating supply of ...% over the last 3 days, which could cause selling pressure. It would therefore be advisable to take profits and/or place a stop loss.”
A crypto project that is skilled in marketing and communication will announce good news shortly before a token distribution, so that sellers have buyers to support the price. This is why it is increasingly common to see a sharp rise in price, followed by a fall as soon as the tokens have been distributed.
Source: alert indicator created and calculated by CryptoScores based on data from coingecko.com.