In the field of digital assets, Crypto Twitter is an important seat of power. Memecoins and reputable large-cap assets can see an increase or decrease in value depending on whether the quirky Twitter crowd decides to pay attention.
Huge rallies and dramatic declines often trigger waves of Fear, Uncertainty, and Doubt (FUD) or Fear of Missing (FOMO) on the platform that can massively add to the evolving price momentum.
Granted, it would be handy if increasing Twitter volume always led to price increases – but as the facts show, that relationship is much, much more complicated.
Tweet volume is one of the components of a proprietary formula that supports the VORTECS ™ Score, a machine learning algorithm that compares historical and current market conditions related to digital assets to aid crypto trader decision making. The model takes into account a variety of other indicators – including market outlook, price action, social sentiment, and trading activity – to arrive at a result that will judge whether current conditions for a given coin are historically bullish, neutral, or bearish.
This week we follow five digital assets that have made the biggest strides in Twitter activity this month. All five had tweet volumes up hundreds of percentage points from the previous month’s average – but how feasible was this dynamic for traders?
The VORTECS ™ Score could give investors some pointers.
Telcoin (TEL): + 300% Twitter volume
Two significant spikes in tweets occurred between May 2 and May 5, as Telcoin (TEL) was preparing for a massive jump in price that would go from under $ 0.01 to over $ 0.05 in 10 days TEL marked. While the coin would typically get several hundred mentions a day, these two spikes saw more than 3,000 each.
In combination with other factors, this pattern was recognized as historically favorable by the VORTECS ™ model, which achieved a very high score of 91 (red circle in the graphic). Less than a day later, a huge price increase followed. Further tweet volume spikes in May were more likely to be followed by price increases than previous ones.
Overall, Telcoin delivered 189% against the US dollar and 345% against Bitcoin (BTC) over the past 30 days.
Polygon (MATIC): + 240% Twitter volume
The Twitter activities around MATIC and its price movements entered a positive circle in May. Each segment of the price rally sparked a spike in chatter, which in turn preceded another round of the token appreciation.
Of course, Polygon’s remarkable month had a lot more to offer, with a number of positive real-world developments and trading activity spikes, but tweet volume seemed to be a key feature of any VORTECS ™ score peak (red circles on the graph).
MATIC’s monthly gains: 125% against the US dollar and 248% against BTC.
iExec (RLC): + 711% Twitter volume
IExec’s RLC token became the biggest winner in May in terms of additional tweet volume. The price hike, however, was more modest: 60% against the US dollar and 148% against Bitcoin.
In the case of RLC, as the charts show, the spikes in tweet volume were largely reactive and merely followed price movements. The coin’s VORTECS ™ Score was largely neutral prior to the rally that began around May 9, suggesting that the combination of the previous market conditions had not been seen frequently before.
Solana (SOL): + 525% Twitter volume
In Solana, the average tweet volume has more than quadrupled compared to the previous month, but almost all corresponding SOL price increases were wiped out by the end of May: -31.48% against the US dollar and + 6.06% against Bitcoin.
Tweet volume lagged far behind price action with one notable exception: an oversized jump from 5,000 to 20,000 tweets on May 17, which contributed to a VORTECS ™ score of over 80 and about 36 hours before the coin hit its all-time high in was close to USD 58 (red circles in both charts).
Ethereum Classic (ETC): + 321% Twitter volume
While the reasons for the Ethereum Classic (ETC) sudden surge from $ 40 to $ 160 in the first week of May remains a mystery, we can be pretty sure that an explosion in the volume of Twitter conversation wasn’t one of them: all of them The added tweets came in response to the price rally.
The VORTECS ™ algorithm did not identify a historically favorable outlook either, as the score remained largely in the neutral zone.
ETC ended the month + 67.36% versus the US dollar and + 158.85% versus Bitcoin.
An increase in Twitter activity related to a digital asset can mean a variety of factors depending on the configuration of other key market and social indicators. The VORTECS ™ Score, which is only available to members of Cointelegraph Markets Pro, can contextualize the tweet volume within a constellation of other market-moving metrics.
For those who prefer to use raw data, the absolute number of tweets and the current versus average tweet volume are available as separate metrics on the Market Intelligence platform.
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