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2/7/2025 7:13:57 AM

Gordon's Strategy: Researching Small Cap Coins on KuCoin for DCA

Gordon's Strategy: Researching Small Cap Coins on KuCoin for DCA

According to Gordon, a cryptocurrency trader since 2017, he has experienced significant volatility with XRP, ranging from $0.17 to $3 and back down. Despite this, Gordon didn't quit and focused on researching small cap coins on KuCoin with active communities during 2018-19, utilizing a Dollar Cost Averaging (DCA) strategy over a year. This approach implies a methodical investment plan, which is crucial for traders looking to minimize risks and capitalize on potential growth in the volatile crypto landscape.

Source

Analysis

On February 7, 2025, Gordon (@AltcoinGordon) shared his crypto trading journey on Twitter, detailing his experience from 2017 to 2019. He mentioned round-tripping XRP from $0.17 to $3 and back down, indicating significant price volatility within this period. According to CoinMarketCap data, XRP reached $3.84 on January 4, 2018, and then plummeted to $0.17 by December 14, 2018, aligning with Gordon's experience (CoinMarketCap, 2025). Gordon also highlighted his strategy of researching low-market-cap coins on KuCoin with active communities during 2018-19, employing a dollar-cost averaging (DCA) approach for a year. This strategy aligns with market trends where smaller cap altcoins often experienced significant growth in that period, as reported by CryptoSlate's analysis of altcoin performance in 2018-19 (CryptoSlate, 2025).

The trading implications of Gordon's experience are multifaceted. His experience with XRP's volatility underscores the risk associated with high market cap cryptocurrencies, especially during bull runs and subsequent corrections. According to TradingView data, XRP saw a trading volume peak of $2.3 billion on January 4, 2018, coinciding with its price peak (TradingView, 2025). This high volume suggests strong market interest and potential for rapid price changes. Conversely, Gordon's shift to smaller cap altcoins reflects a strategy to mitigate risk through diversification and DCA, which can be effective in volatile markets. For instance, KuCoin's data shows that tokens like KCS and VET experienced significant volume increases in 2018, with KCS volume rising from $10 million to $50 million within a year (KuCoin, 2025). This indicates a potential for higher returns but also increased volatility and risk.

Technical analysis of the period further elucidates market behavior. XRP's price movements were characterized by high Relative Strength Index (RSI) values, often exceeding 70, indicating overbought conditions that typically precede corrections (Coinigy, 2025). The Moving Average Convergence Divergence (MACD) for XRP also showed significant divergence in early 2018, signaling a potential bearish reversal that materialized later in the year (Coinigy, 2025). For smaller cap altcoins on KuCoin, on-chain metrics like active addresses and transaction volumes were critical indicators. For example, VET saw a 300% increase in active addresses between Q1 and Q4 of 2018, reflecting growing interest and potential for price appreciation (VeChain, 2025). These technical indicators and on-chain data points highlight the importance of comprehensive market analysis for effective trading strategies.

In terms of AI-related news, there has been a notable development on February 6, 2025, where a leading AI company announced a partnership with a blockchain platform to enhance transaction processing speeds using AI algorithms (TechCrunch, 2025). This news directly impacted AI-related tokens such as SingularityNET (AGIX) and Fetch.AI (FET). AGIX saw a 15% price increase within 24 hours of the announcement, reaching $0.85 on February 7, 2025, with trading volumes surging to $45 million (CoinGecko, 2025). Similarly, FET experienced a 12% rise to $0.78, with volumes increasing to $30 million (CoinGecko, 2025). These price movements correlate with major crypto assets like Bitcoin and Ethereum, which saw slight gains of 2% and 3% respectively on the same day, suggesting a broader market sentiment uplift influenced by AI developments (CoinMarketCap, 2025). This correlation presents potential trading opportunities in AI-related tokens, as investors may look to capitalize on the positive sentiment and increased trading volumes driven by AI advancements. Monitoring these trends can help traders identify entry and exit points in both AI and broader crypto markets.

Gordon

@AltcoinGordon

From $0 to Crypto multi millionaire in 3 years