Are We at the Bottom for Kaspa? Let's Dive In! 🚀
I’ve realized I should start posting more here on TradingView, especially since many of you have started following me recently. Thank you for the support! 🙌
Now, let’s take a closer look at why I think (or thought) this could be the bottom for Kaspa.
Key Reasons:
1️⃣ Power Law Bands: We were trading near the lowest deviation bands, historically a strong signal for undervaluation.
2️⃣ 120-Day Kaspa Cycle: My custom sinewave projection indicated we were near the downward cycle completion, aligning with a potential reversal.
3️⃣ Euclidean Distance Metric: This metric was at a low and displayed a buy signal twice, another indication of being undervalued.
🛠️ New Indicators I’ve Developed
In the past few months, I’ve created two new indicators that helped me analyze this potential bottom:
4️⃣ Kaspa Social Metric Index
This indicator tracks social media trends around Kaspa. It reveals that when people are loud and highly active on social platforms due to price spikes, it's often a good time to sell. Conversely, when prices are low, engagement typically drops—a signal we might be near a bottom.
5️⃣ Aggregated Kaspa Futures Premium Index
This metric calculates the difference between Kaspa's perpetual futures price and the spot price across the top 5 exchanges by volume.
When futures prices trade at a premium (higher than spot), it suggests the majority of leveraged traders are long.
When the metric reaches extreme values, it often signals an upcoming market reversal.
Recently, this index was deeply negative, further supporting the idea of a potential bottom.
The Importance of Confluence 📊
When multiple indicators like these align, the probability of a successful trade increases. Seeing all these metrics pointing to undervaluation gave me the confidence to act decisively.
Here’s what I did:
✔️ I DCA’d heavily into this bottom.
✔️ I also opened a small leveraged long position to take advantage of the opportunity.
Greetings, Sander
I’ve realized I should start posting more here on TradingView, especially since many of you have started following me recently. Thank you for the support! 🙌
Now, let’s take a closer look at why I think (or thought) this could be the bottom for Kaspa.
Key Reasons:
1️⃣ Power Law Bands: We were trading near the lowest deviation bands, historically a strong signal for undervaluation.
2️⃣ 120-Day Kaspa Cycle: My custom sinewave projection indicated we were near the downward cycle completion, aligning with a potential reversal.
3️⃣ Euclidean Distance Metric: This metric was at a low and displayed a buy signal twice, another indication of being undervalued.
🛠️ New Indicators I’ve Developed
In the past few months, I’ve created two new indicators that helped me analyze this potential bottom:
4️⃣ Kaspa Social Metric Index
This indicator tracks social media trends around Kaspa. It reveals that when people are loud and highly active on social platforms due to price spikes, it's often a good time to sell. Conversely, when prices are low, engagement typically drops—a signal we might be near a bottom.
5️⃣ Aggregated Kaspa Futures Premium Index
This metric calculates the difference between Kaspa's perpetual futures price and the spot price across the top 5 exchanges by volume.
When futures prices trade at a premium (higher than spot), it suggests the majority of leveraged traders are long.
When the metric reaches extreme values, it often signals an upcoming market reversal.
Recently, this index was deeply negative, further supporting the idea of a potential bottom.
The Importance of Confluence 📊
When multiple indicators like these align, the probability of a successful trade increases. Seeing all these metrics pointing to undervaluation gave me the confidence to act decisively.
Here’s what I did:
✔️ I DCA’d heavily into this bottom.
✔️ I also opened a small leveraged long position to take advantage of the opportunity.
Greetings, Sander
Cryptocurrency Analyst & Trader
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Cryptocurrency Analyst & Trader
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.