Trading Tip #20: How to Use Volume to Spot Opportunities
Augur cryptocurrency trading volume increased tenfold in two days
Augur shot to $ 30.00 and quickly came back
The volatility of the coin has more than doubled in a matter of days
The trading volume is many times higher than the volume of bets on the platform
Augur decentralized platform coin has risen in price by 50% over the weekend, and trading volume has increased tenfold, but the success was fleeting
Augur, a decentralized betting platform, experienced the fastest growth in trading volume in several years, and the project’s native cryptocurrency, REP, tested the $ 30.00 psychological mark on Saturday 22 August for the first time since January 2018..
Augur ride a roller coaster
Augur (REP) was lucky this weekend as the price tested the $ 30.65 level. This is the highest price since January 2018, when REP was trading at all-time highs in the $ 110.00 area. Daily trading volume increased more than tenfold (from $ 13 million on Thursday, August 20 to $ 113 million on Friday, August 21). Moreover, on Saturday, the figure briefly reached $ 163 million, which is also the highest since January 2018..
The sharp rise and subsequent fall in the price led to an increase in volatility: the indicator more than doubled in three days, from 61.93% on August 20 to 144.62% on August 23. The all-time high was recorded in January 2019 at 252.42%.
At the time of this writing, REP is ranked 55th in the CoinMarketCap ranking. REP / USD is trading at $ 24.9, while the average daily trading volume fell to $ 52 million. Correlation with bitcoin came out of negative zone and recovered to 0.86.
REP / USD chart. Source: CoinMarketCap
What is Augur
In the cryptocurrency world, the real functionality of a coin often fades into the background, especially when its price moves. Meanwhile Augur powers a huge decentralized betting market.
The platform where you can bet on anything was founded in 2014 by Jack Peterson, Joey Krug and Jeremy Gardner..
Since then, she has been criticized for lack of censorship..
The creators of the platform, however, claim that Augur “uses the wisdom of the crowd” and allows people to bet on whatever they like..
Now, for example, you can bet on the victory of Donald Trump in the elections in November of this year, or bet on money about whether Bitcoin will reach $ 14,000 by the end of September..
According to Predictions.Global, a site that monitors the Augur markets, the total open bets are around $ 7.9 million, many times less than Augur’s current average daily trading volume (REP). In addition, there are currently only 84 open markets, with forty of them without a single participant. Perhaps this is due to the fact that the transaction fee on the platform is $ 23 and few people are willing to pay that kind of money for participating in a dispute..
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