Thread by @Gems_Radar

NEW ANGLE IN FINDING GEMS: DIVERGENCE IN MONEY FLOW
 
After researching, I found out that there are some correlations between the TVL and the price of a protocol.
Check the thread below to have a new angle in finding gems.
 
#angle #money #divergence

NEW ANGLE IN FINDING GEMS: DIVERGENCE IN MONEY FLOW
 
There are two case studies here:
$WAVES in 9/3 - 15/3 period
$LUNA in Feb period
 
#angle #money #divergence

1. With $WAVES, the price of $WAVES after a huge bull run to the 30 zone, it has declined a little bit. However, the TVL of this protocol did not show the same picture. The TVL went sideways for a week and continued to achieve its ATH with nearly $2.5B.

#angle #money #divergence

2. Then the price of $WAVES reacted nicely and now break-out the 30 zone with high volume.

#angle #money #divergence

3. With $LUNA, the price of $LUNA fluctuated around the 50-60 zone in Feb. However, the TVL of Terra grew remarkably in this period, witnessing 50% growth in the same period. At last, $LUNA price grew up to 80%, achieving its new ATH at the 100 zone again.

#angle #divergence

4. So what did this mean ?
I believe this shall be called divergence in money flow.

#angle #divergence

5. Whenever the TVL has not moved with the same ratio with the Price. It showed that divergence. The protocol is attracting money at a higher rate than the price movement. At last, the money would create pressure for the native token of the protocol to rise.

#angle #divergence

6. It should be a signal to find gems in this market. Check the divergence table to understand the correlation more.

#angle #money #divergence

NEW ANGLE IN FINDING GEMS: DIVERGENCE IN MONEY FLOW

NFA. DYOR.
Hope you guys have a new angle in finding gems!

#angle #money #divergence