The analysis demonstrates how combining cluster analysis and aggregated data helps identify weakening sellers and the formation of localized shortages. Additional metrics, such as buying efficiency, increased confidence in the long scenario. The momentum rally confirmed the validity of the analysis, and selling on the pullback served as a signal for timely profit-taking.
Table of content
Coin: TOWNS/USDT
Risk: Medium
Understanding level: Beginner
Cluster Chart: During the decline, large volume clusters started forming (blue rectangle). After that, sell volumes began to dominate (red rectangle), but instead of continuing to fall, the price began to rise. Such dynamics may indicate a local supply shortage and weakening selling pressure.
In the Dashboard
Delta/Volume Balance: Aggregated data shows a dominance of selling across all pairs and exchanges, clearly visible on the delta histogram (red rectangle). This confirms the same pattern observed on the cluster chart.
Price Change per Unit of Volume: Additionally, we can see that the efficiency of market orders has started to shift in favor of buyers (black rectangle), indicating increasing buying effectiveness.
Cluster Chart: After an impulsive rise of more than 50%, the price formed a pullback accompanied by significant market selling activity (red rectangle and arrow). Under such conditions, further holding of the position carried elevated risks, so locking in profits was the most rational decision.
The entry was based on signs of a local supply shortage and weakening selling pressure, confirmed by both cluster and aggregated data. The increase in buying efficiency, reflected in the price change per unit of volume, provided additional confirmation of the likelihood of continued upward movement.
The impulsive upward move validated the analysis, while the appearance of heavy selling during the pullback served as a signal to take profits and close the trade.
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