The diagram shows two line graphs that represent the price of Conflux (CFX), China’s public blockchain, and the volume of online mentions of ‘Chinese Altcoins,’ including CFX. The analysis of the graph suggests that community buzz can be used as a leading indicator for smart money to accumulate Chinese coins or CFX. Additionally, the same graph demonstrates a spike in February, which represents the general public chasing a coin that has already pumped.
https://twitter.com/GCRClassic/status/1612431373851140097
The graph shows that the volume of online mentions of Chinese coins, including CFX, spiked five days after GCR shared his Chinese thesis on Twitter. This indicates that community buzz can act as a leading indicator for smart money to accumulate Chinese coins or CFX.
However, it is important to note that the spike in online mentions of Chinese coins and CFX in February represents the general public chasing a coin that has already pumped. This means that the price of CFX had already started to take off before the volume of online mentions increased. Hence, community buzz in this case is a lagging indicator, rather than a leading indicator.
It is also worth noting that the market’s attention was focused on other coins such as AI, Metaverse, and Optimism-related coins from the end of January to mid-February. This indicates that the cryptocurrency market is highly dynamic and can shift its attention quickly, making it challenging for investors to predict which coins will perform well in the future.
In conclusion, the analysis of the graph suggests that community buzz can be a leading indicator for smart money to accumulate. However, investors should be cautious and recognize that community buzz can also be a lagging indicator and that the market’s attention can shift quickly.
Analyst: Kevin Lee @ Catalyze Research
