{"id":394189,"date":"2022-01-14T16:11:33","date_gmt":"2022-01-14T13:11:33","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/here-is-how-one-algorithmic-indicator-anticipated-multiple-phases-of-fxs-protracted-rally\/"},"modified":"2022-01-14T16:11:33","modified_gmt":"2022-01-14T13:11:33","slug":"here-is-how-one-algorithmic-indicator-anticipated-multiple-phases-of-fxs-protracted-rally","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/here-is-how-one-algorithmic-indicator-anticipated-multiple-phases-of-fxs-protracted-rally\/","title":{"rendered":"# Here is how one algorithmic indicator anticipated multiple phases of FXS\u2019 protracted rally"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a22eb13c10c7\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a22eb13c10c7\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/here-is-how-one-algorithmic-indicator-anticipated-multiple-phases-of-fxs-protracted-rally\/#Governing_a_stablecoin_ecosystem\" >Governing a stablecoin ecosystem<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/here-is-how-one-algorithmic-indicator-anticipated-multiple-phases-of-fxs-protracted-rally\/#Curve_Wars_winner\" >Curve Wars winner<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/here-is-how-one-algorithmic-indicator-anticipated-multiple-phases-of-fxs-protracted-rally\/#Green_means_go\" >Green means go<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Here is how one algorithmic indicator anticipated multiple phases of FXS\u2019 protracted rally <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Frax Share (FXS) has been one of the few altcoins to pull off a dominant price performance amid the down market of late 2021 to early 2022. In the month between Dec. 14 and Jan. 14, FXS was up 128% against the U.S. dollar and 159% against Bitcoin (BTC). In addition to this impressive feat, FXS topped the charts of historically bullish trading conditions on multiple occasions throughout this period. What is behind the token\u2019s recurring strong trading outlook?<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Governing_a_stablecoin_ecosystem\"><\/span>Governing a stablecoin ecosystem<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>FXS is the utility token underpinning the Frax ecosystem \u2014 a stablecoin protocol that seeks to occupy a middle ground between entirely collateralized and entirely algorithmic stablecoins, thus harnessing the advantages of both designs.<\/p>\n<p>In accordance with the protocol\u2019s highly \u201cgovernance-minimized\u201d <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roach to its architecture, there is a limited set of parameters that the community gets to adjust using the token. These include refreshing the rate-of-collateral ratio \u2014 i.e., the share of the protocol\u2019s FRAX stablecoin that is stabilized either algorithmically or through collateralization \u2014 in addition to adding collateral pools and adjusting various fees.<\/p>\n<p>FXS\u2019 supply is initially capped at 100 million tokens, and the protocol is designed for the token supply to be deflationary as the demand for the FRAX stablecoin rises. This mechanism could be responsible for at least some portion of FXS\u2019 momentum in recent weeks. As Cointelegraph previously reported, FRAX added 300% to its circulating supply between late October and late December.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Curve_Wars_winner\"><\/span>Curve Wars winner<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Because of this link between the demand for FRAX and the corresponding shrinkage in the supply of FXS, rounds of FRAX adoption can theoretically result in waves of FXS appreciation. Evidence supporting this hypothesis can be found in several recent instances of the decentralized finance (DeFi) community adopting the stablecoin.<\/p>\n<p>For one, FRAX\u2019s addition to the Convex Finance platform, where several major DeFi protocols compete for voting rights that can be leveraged to increase their respective stablecoins\u2019 yield, preceded a major spike in the FXS token\u2019s price.<\/p>\n<p>Interestingly, many of such FXS rallies, apparently inspired by major FRAX adoption events, produce recurring patterns of trading and social activity that get detected by Cointelegraph Markets Pro\u2019s algorithmic indicator, the VORTECS\u2122 Score. This AI-driven tool is trained to sift through tokens\u2019 historical performance data, looking for familiar combinations of variables such as price movement, trading volume and <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> sentiment that have systematically preceded dramatic price movements.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Green_means_go\"><\/span>Green means go<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Here, for example, is the chart of FXS\u2019 VORTECS\u2122 Score vs. price from the week that FRAX was added to Convex Finance. The indicator flashed an ultra-high Score more than one full day ahead of the token\u2019s powerful price spike.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/1a653619-4a19-4fe9-b7a9-b3200e738794.png\"><figcaption style=\"text-align: center;\"><em>VORTECS\u2122 Score (green\/gray) vs. FXS price, Dec. 17 \u2013 24. Source: <\/em><em>Cointelegraph Markets Pro<\/em><\/figcaption><\/figure>\n<p>Scores above 80 conventionally indicate the algorithm\u2019s solid confidence that the conditions around the assets are historically bullish, while those beyond 90 suggest extremely high confidence. In this case, on Dec. 20, with FXS\u2019 price remaining largely flat, the token\u2019s VORTECS\u2122 Score exploded, reaching an impressive value of 96 (red circle in the chart). Thirty-two hours after the peak Score, FXS\u2019 price shot up from $13.96 to $18.27 in just 18 hours.<\/p>\n<p>In the weeks that followed, FXS\u2019 VORTECS\u2122 Score peaks kept coming ahead of price spikes. Earlier this week, two streaks of Scores above 80 foreshadowed two phases of explosive price action, including the one that saw the asset hit a weekly high of $41.72.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/a171a888-4933-49cf-8486-3bbf9a9f69ac.png\"><figcaption style=\"text-align: center;\"><em>VORTECS\u2122 Score (green\/gray) vs. FXS price, Jan. 6 \u2013 13. Source: <\/em><em>Cointelegraph Markets Pro<\/em><\/figcaption><\/figure>\n<p>Not many digital assets display high VORTECS\u2122 Scores so frequently. Furthermore, CT Markets Pro\u2019s internal research shows that tokens can widely vary in the degree to which historically favorable conditions anticipate their actual price movement. Apparently, what is happening in the case of recent FXS rallies is that the forces driving the waves of the token\u2019s appreciation are similar, leading to a familiar arrangement of trading and social metrics that the VORTECS\u2122 algorithm captures so well.<\/p>\n<p>Of course, the relationship between historical precedent and subsequent price action is not always this smooth. Yet, in many cases, this tool \u2014 capable of parsing years\u2019 worth of assets\u2019 performance data \u2014 can be massively useful for crypto traders.<\/p>\n<p><em>Cointelegraph is a publisher of financial information, not an investment adviser. We do not provide personalized or individualized investment advice. Cryptocurrencies are volatile investments and carry significant risk, including the risk of permanent and total loss. Past performance is not indicative of future results. Figures and charts are correct at the time of writing or as otherwise specified. Live-tested strategies are not recommendations. Consult your financial adviser before making financial decisions.<\/em>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/here-is-how-one-algorithmic-indicator-anticipated-multiple-phases-of-fxs-protracted-rally\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Here is how one algorithmic indicator anticipated multiple phases of FXS\u2019 protracted rally &#8221; Frax Share (FXS) has been one of the few altcoins to pull off a dominant price performance amid the down market of late 2021 to early 2022. In the month between Dec. 14 and Jan. 14, FXS was up 128%&#8230;<\/p>\n","protected":false},"author":1,"featured_media":394190,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDEvMGFjODdkMGMtZDE1NS00MzhhLWI5NjAtMjcxMjE3MTc5MmYyLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,88119,74863,74939,105688,75493,73785,71407],"class_list":["post-394189","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-altcoin-watch","tag-cryptocurrencies","tag-market-analysis","tag-markets-pro","tag-stablecoin","tag-markets","tag-trading"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/394189","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=394189"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/394189\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/394190"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=394189"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=394189"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=394189"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}