To identify in which range of the #Coinmarketcap ranking a cryptocurrency tends to experience large bullish impulses, we can look at the history of cryptocurrencies in the current and past market. Here are some key points based on analysis of historical data and market patterns:
Mid Ranges (20-50):
Cryptocurrencies in this range typically have greater upside growth potential due to their lower market capitalization compared to the major ones, allowing for a higher percentage increase with less investment.
These projects already have a certain level of validation and adoption, but are still in the growth and expansion phases.
Low Ranks (50-100):
Cryptocurrencies in these ranges can see dramatic rises, although they are riskier.
Investors in search of high returns often speculate on currencies in these ranges, which can lead to sharp rises if there is positive news or significant developments.
History Observations
Based on historical data and simulations:
Ranks 1-10: Major cryptocurrencies like Bitcoin and Ethereum have more stable and predictable movements due to their high capitalization and liquidity, although they can still experience significant momentum during bull market cycles.
Ranges 10-20: Coins like Polkadot or Chainlink have shown considerable upside potential when they have been in this range, due to technological developments and partnerships.
Ranges 20-50: This is the range where the largest percentage gains are often seen. Coins like Solana and Avalanche have had big boosts when they were in these ranges.
Ranges 50-100: Higher volatility and risk, but also opportunities for big profits. Many emerging projects with new technologies or innovative use cases start in this range.
Conclusion
Cryptocurrencies in CoinMarketCap's 20-50 ranges typically have significant upside potential due to their lower capitalization compared to major cryptocurrencies, combined with growing adoption and active development. However, it is crucial to conduct a thorough analysis and consider factors such as the team behind the project, the technology, and the competitive landscape before investing.
