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What happens to Avalanche after a 50% drop in 30 days?

Since 2020, Avalanche has shown a 50% drop in 30 days 10 times. In the 10 cases old enough to score, the price was higher 7 days later 30% of the time, with a median move of −5.4%. On an ordinary day the median 7-day move for AVAX is −0.7%.

No better than chance24

Once you allow for how many studies were run, a gap this large is luck about 71% of the time, so this signal has told you nothing reliable about the following week.

Cases since 202010last on 13 Jun 2022
Higher after 7 days30%ordinary: 47%
Median 7-day move−5.4%ordinary: −0.7%
Could be luck71%allowing for 3,572 studies
Worst / best case−38% / +20%over 7 days
Median path after the signalMiddle half of casesOrdinary AVAX drift
−40%−30%−20%−10%0%+10%+20%+30%+40% -5dsignal+7d+14d+30d
Price change relative to the close on the signal day. Based on the 10 cases with a full 30 days of history after them.

By holding period

AfterCasesHigherMedian moveMiddle halfOrdinary medianGapBy luckProof score
1 day1080%+1.8%+0.3% to +7.6%0.0%+1.9%47%25
3 days1030%−6.4%−13.4% to +6.0%−0.3%−6.1%25%30
7 days1030%−5.4%−18.4% to +4.3%−0.7%−4.7%71%24
14 days1030%−18.6%−28.1% to +12.3%−1.7%−16.9%28%30
30 days1030%−28.2%−39.4% to +4.9%−2.4%−25.7%27%30

“Ordinary median” is the median move of AVAX over the same number of days starting from any day. “Gap” is the signal's median minus the ordinary one. “By luck” is how often a gap at least that large comes from randomly chosen days, corrected for the 3,572 studies run at each holding period (for this study taken alone: 26%).

Holding it for 7 days

Typical dip on the way−17.8%ordinary AVAX: −8.0%
1 case in 4 dipped past−26.6%before day 7
Fell 10% or more on the way70%ordinary: 42%
Typical best point+12.6%highest price within 7 days
Median after costs−5.7%ordinary: −1.0%
Ahead after costs30%ordinary: 46%

Dips and best points use each day's low and high, measured from the close on the signal day. Costs assume 0.3% for a round trip: a 0.1% exchange fee each way and 0.05% slippage each way.

Every occurrence

One square per occurrence, oldest first. Green: higher 7 days later. Red: lower. Grey: not yet 7 days old.

DateClose+1d+7d+30d
13 Jun 2022$16.11+2.7%+6.1%+16.9%
6 Jun 2022$25.99−5.3%−38.0%−26.2%
30 May 2022$27.71−4.7%−6.2%−35.8%
23 May 2022$29.06+0.1%−4.6%−44.6%
16 May 2022$32.56+5.6%−10.7%−43.8%
9 May 2022$41.20+8.2%−21.0%−40.5%
22 Jan 2022$59.78+8.4%+20.3%+17.2%
25 Jun 2021$10.24+0.8%+8.6%+9.9%
12 Jun 2021$13.55+9.0%−1.2%−10.2%
5 Jun 2021$17.23+0.9%−21.4%−30.1%

The 12 most recent. All 10 are in the open data file.

The rule

Close at least 50% below the close 30 days earlier.

Occurrences closer than 7 days to the previous one are not counted again. The signal is confirmed at the daily close (00:00 UTC) and returns are measured from that close. Full method.

The same signal on other coins

CoinCasesHigher after 7dMedianGapVerdict
THORChain2162%+7.1%+7.4%Weak evidence
Fetch.ai2152%+1.2%+2.4%No better than chance
Harmony2245%−0.6%+0.7%No better than chance

50% drop in 30 days across all 94 coins

Other Avalanche signals

Full Avalanche record

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