Momentum

Momentum is a key trading indicator on QuantHive that measures the interest trajectory of Alpha Traders in a specific token over time. It provides insight into whether the enthusiasm around a token is increasing or waning, helping traders anticipate potential price moves based on shifts in trading volume dynamics.

How Momentum Works

Momentum compares recent short-term trading volume against longer-term average volume among Alpha Traders:

• When short-term volume exceeds long-term volume, Momentum is rising, indicating growing trader interest and hype.

• When short-term volume falls below long-term volume, Momentum is declining, signaling waning enthusiasm or potential profit-taking.

A rising Momentum score suggests the token is gaining attention and could be poised for upward price action, while a declining score may warn of weakening demand or impending pullbacks.

Why Momentum Matters

• Early Signal of Trend Changes: Momentum can alert traders to shifts before price changes become obvious.

• Filters Noise: By focusing on volume trends of top alpha wallets, Momentum reflects meaningful market sentiment rather than random spikes.

• Complements TPI: Used together with the Trader Position Index (TPI), Momentum gives a fuller picture of both direction and strength of market moves.

Momentum is your gauge for the pulse of the market’s interest, showing you when top alpha traders are heating up or cooling off on a token. Harness this insight to ride trends with confidence or spot early exits before sentiment turns.