Here’s how traders knew LUNA and RAY were on the verge of a bullish breakout. The values of crypto assets are heavily influenced by online information flows. Just last week, investors saw how false news may cause a token’s market value to skyrocket, even if just for an hour. Fortunately, the impacts of credible news tend to stay longer; nonetheless, the challenge for investors is determining which stories to consider when making trading choices.
According to extensive research, three sorts of news announcements frequently impact cryptocurrency prices: exchange listings, staking programme launches, and new partnership announcements. While there hasn’t been a real partnership announcement in a while that has resulted in significant price swings, two crypto assets have reaped the benefits of last week’s listing and staking news.
The debut of staking on Binance for Raydium’s RAY contributed to a 52.65% gain in the asset’s price over the next four days, while the listing of Terra’s LUNA token on Bitfinex resulted in a peak price increase of 61.17%.
The early bird always gets the worm
LUNA’s price had been falling since early in the week, when it peaked at approximately $34, and had reached a local low of slightly around $27 on Sept. 8. After then, Bitfinex announced the listing on its website.
The asset’s price exploded, jumping from about $27 to $30.92 in less than six hours. But it was only the start.
Listing announcements frequently cause the price to rise in two stages: first, there is the sheer effect of the news, and then there is the influence of the newly increased liquidity. This appears to be the case with LUNA’s price movement. The rising trend has largely smoothed out following the initial burst in the aftermath of the news. However, the momentum continued for another two days, with the asset’s price reaching $43.71, a more than 60% rise since the news broke.
Major staking announcements tend to have a more concentrated effect. As eager market participants rush to stockpile the asset when an appealing staking opportunity has just opened up.
RAY’s price line jumped when Binance announced their RAY staking programme. Which offers an APY of up to 17.69%. And was, therefore, more vertical than LUNA’s, with the asset bursting from $10.49 to $16.01 in only 24 hours.
Real-time data is what puts investors ahead of the pack
NewsQuakesTM are automatic alerts powered by an AI system. That analyses thousands of information sources in real-time to offer potentially market-moving news to members. NewsQuakesTM notifications are denoted by gold circles on the charts; notice how they always precede upward price movement.
A technology that automatically notifies users to the types of events that have consistently changed digital asset values in the past might substantially empower ordinary traders in a market that reacts forcefully to pertinent news within minutes.