SWFTC - And now for a swift correction?

Assets covered: SWFTC

Metrics used: MVRV 7D, Network Growth, Supply on Exchanges, Social Volume

Charts: https://app.santiment.net/s/WMPI15iA

MVRV 7D

SWFTC's MVRV 7D which measures the short-term profit/loss of holders is showing that we have entered the danger zone, which historically saw short-term holders who are well in profit....take some off the table.

It still has quite a bit of correction room to go before we hit the opportunity zone.

Supply on Exchanges

With the price going up recently, we are seeing a strong drop in supply on exchanges, indicating that folks are accumulating even at these levels.

Historically, this looks like a bad move since price tumbles shortly after like what we have observed earlier this year.

Also interesting to note is that capitulation was seen as supply on exchanges had a huge spike in May when price took a deep dive.

Social Volume

SWFTC mentions have spiked quite a bit and is now having the highest cluster over the past 6 months. Generally, this indicates that the retail crowd is involved and when there's no new folks coming in, price naturally will fall.

Network Growth

SWFTC's Network Growth spiked in the recent rally, likely due to new retail folks speculating on it (as observed from Social volume metric previously).

However, a continued rally is highly unlikely if Network growth doesn't continues to grow. Once there's a sharp drop like before, price takes too crumbles fast.

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Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.