A story of coin supply on exchanges: behaviour pattern for a healthy trend

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Garry Kabankin
Sep 10, 2020

The latest dump revealed a picture common for a set of tokens: a declining percent of coin supply on exchanges. Have a look:


REN:

Source: Sanbase

LEND:

Source: Sanbase<br/>

BAND:

Source: Sanbase<br/>

Compare to the following.

Rewinding ⏪ back to March dump this is what we saw what happened:

REN:

Source: Sanbase

Stages of speculative interactions with a coin:


1. We saw massive price dumps;

And we saw a declining coin supply similar to what we are seeing now.


2. And then at some point, probably around 27th of March, around known resistance level, simply what traders thought was good enough to take profits, they started selling again and as we started to recover, it reiterated the point:

Source: Sanbase

We corrected a little bit, absorbed the sell pressure, started growing higher again, and then there was no new sell pressure any more:

Source: Sanbase

The speculators started removing their funds from exchanges, and there was no inflow because people thought "ok, we're going to continue to rise", this is what we ideally want to look for coming forward:

Source: Sanbase

May be some new sell pressure is expected, especially when people think that this is a dead cat bounce.


And then if we notice that and the market rejects it, or may be we see a small correction, but we bounce back pretty quickly, then probably if history repeats itself, we stop seeing rising sell pressure and price is able to move upward.


In every stage, the price is always telling a story and when you have a coin supply on exchanges it makes the story even clearer.


Because everything is behaviour by humans anyways.

RENSTRATEGIES/ALPHA
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Garry Kabankin
Sep 10, 2020

Thanks for reading!

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