This weekend's REN top gave nice profits to many traders

Profile picture
Garry Kabankin
Oct 12, 2020

Assets covered: REN

Metrics used: Holders Distribution, Daily Active Addresses, Daily Active Deposits, Exchange Inflow, Social volume, MVRV, Mean Coin Age, Mean Dollar Invested Age

Summary: REN continues to follow a clear framework of spotting bottoms and tops.


A couple of weeks ago we posted an insight calling the bottom in REN.

Long story short we had some bottom indicators there, around October 7th:

Source: Sanbase

1. There's a clear steep 'stairs' of accumulation on the picture above, a combined balance of wallets holding from 10K to 10M REN increased by around 3% of total supply.



2. But also there was a Daily Active Addresses divergence, which also pointed to price likely rising soon, cause we had price going downwards while DAA was rising:

Source: Sanbase

Then we had a nice 90% rally for a week or so.


And more recently there were fairly clear signs that we are probably heading for a short term correction.


1. There was a spike in Daily Active Addresses which was very much impacted by spike in Daily Active Deposits, people were moving their coins to exchanges:

Source: Sanbase

2. We can see it from Exchange Inflow rising:

Source: Sanbase

3. We also saw a rising social volume:

Source: Sanbase

4. REN ended up in Santiment Emerging Trends which is often a sign of short term tops.


5. Another top indicator is MVRV 30d:

Source: Sanbase

It shows that short term traders are in very high profit compared to historical levels.

Probably because of a quick move over the weekend so people might not even recognized it.


MVRV 30d at 1.62 means on average short term (30d) holders could have 62% profit.


Basically almost all group of traders could benefit from this weekend pump. Cause all time bound MVRV are above 1. Even more, it's third time high MVRV in REN history. This is a price 'danger zone'.



Now on the other hand if we were looking at REN midterm potential the good news is that long term holders are still sticking to their bags, it's visible on Mean Coin Age and Mean Dollar Invested Age charts:

Source: Sanbase

Both of them are still rising, pointing to the fact that latest price action was probably short term speculators selling off.


Things to watch next days:

Volumes trend - social volume, trading volume, onchain volume (DAA). Price could likely follow the volumes trend with some delay.

REN
Profile picture
Garry Kabankin
Oct 12, 2020

Thanks for reading!

If you enjoyed this insight please leave a like, join discussion in the comments and share it with your friends!

0

Assets from this insight

Ren logo

RenREN

$ 0.261274

24.22%in last 7d