Incr.supply (not 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%, while the price has risen little or not at all (less than 3%).
An alert message is then displayed: “Warning: there has been a ...% increase in the circulating supply over the last 3 days, while the price has not risen (or has risen very little) over the last 14 days (i.e. ...%), which is likely to cause selling pressure. It would therefore be advisable to place a stop loss as soon as possible.”
If the crypto project has been unable or unwilling to announce good news to drive up the price before the tokens are distributed, this increases the likelihood that there will not be enough buyers to support the selling pressure caused by this token distribution. In this case, it is important to monitor the volume of buy orders in the order books at -2% to support the price (see the -2% column on the Market tab of the crypto page on coingecko.com).
Source: alert indicator created and calculated by CryptoScores based on data from coingecko.com.