Markets Move Via Multiple Factors
Many people believe that innovation is the only stimulation that moves the Crypto market and this reveals a major flaw in market psychology. There is no one factor that moves any market, especially Crypto. If it were as simple as innovation then we could all just perform a few google searches, see who is leading the pack in terms of cutting edge technology and retire.
There are a number of projects that have made significant partnerships due to companies needing their technology and yet the price does not reflect it at all. Yes, many times price is a lagging indicator of true value and necessity but there are so many other ingredients involved in a confirmed move to the upside.
A pump to the upside based on news or technological advancement needs to be maintained in order to actually carry any significance. Litecoin has recently outperformed all it's piers in the Top 10 and beyond based on what many would consider to be nothing, as they are only making use of one metric to gauge the market.
Litecoin is up 13% in a 24 hour period, while most other coins are up between 2% and 4%! This dynamic was predicted in the post, "Litecoin - The Forgotten Legend!".
Ask Any Successful Trader
Any truly successful trader will confirm that the true nature of trading involves something known as confluence. This is the combination of many trading indicators pointing in the same direction. For example, the RSI is flashing buy at the same time as a moving averages indicator has just crossed bullish and has the volume to confirm the move. With three indicators in place, the likelihood of a successful trade becomes more likely.
A trader is not going to enter a position based on one metric but will study the charts in search of confluence.
This is not financial advise, please do your own research and exercise caution when investing in markets.
