Online crypto alerts heavily influence the prices of crypto assets. Last week, investors saw how bogus news might cause a token’s market value to skyrocket, even if only for an hour. Fortunately, the effects of real news tend to linger longer; nonetheless, the challenge for investors is determining which stories to consider when making trading decisions.
According to extensive research, three sorts of news announcements consistently affect cryptocurrency prices:
- Exchange listings
- Staking program launches
- New partnership announcements
While there hasn’t been a true partnership announcement in a while that has resulted in significant price moves, two crypto assets have reaped the benefits of last week’s listing and staking news.
The debut of staking on Binance for Raydium’s RAY contributed to a 52.65% increase in the asset’s price over the next four days, while Terra’s LUNA token listing on Bitfinex resulted in a peak price increase of 61.17 per cent.
The worm always falls to the early bird
The price of LUNA had been falling since early in the week, when it peaked at around $34 and had reached a local low of slightly above $27 on Sept. 8. Then Bitfinex announced the listing on its website.
Within six hours, the asset’s price soared from roughly $27 to $30.92. But that was just the start.
Listing announcements frequently cause the price to rise in two stages: first, there is the pure effect of the news, and then there is the influence of the newly acquired liquidity. This appears to be the case with LUNA’s price movement. The increasing trend has largely smoothed out following the initial burst in the aftermath of the news. However, the momentum continued for another two days, with the asset’s price reaching $43.71, a more than 60 per cent increase since the news broke.
Major staking announcements tend to have a more concentrated effect, as eager market participants rush to stockpile the asset when an appealing staking opportunity has just opened up.
RAY’s price line jumped after Binance announced their RAY staking program, which offers an APY of up to 17.69 per cent, and was thus more vertical than LUNA’s, with the asset skyrocketing from $10.49 to $16.01 in just 24 hours.
What puts investors ahead of the pack is real-time data
Both price-moving revelations had one thing in common: users of Markets Pro, Cointelegraph’s data intelligence platform, were informed seconds after being published in primary sources. This was made possible by NewsQuakesTM, an industry-grade alert system that Cointelegraph’s journalists also use to find news leads at breakneck speed.
NewsQuakes are automated notifications powered by an AI algorithm that monitors thousands of information sources in real-time to bring potentially market-moving news to members. Gold circles denote NewsQuakes notifications on the charts; notice how they always precede upward price movement.
A program that automatically informs users of the types of events that have reliably affected digital asset prices in the past can considerably empower retail traders in a market that reacts dramatically to pertinent news within minutes.