I just realized something interesting: many people are trying to find the next explosive altcoin, but most only listen to vague promises from big V influencers online. They say this coin will go up or that coin will go down, but never reveal how they analyze. Unlike that, I want to share a specific and practical method that requires no advertising or buy/sell calls.

Today, I will guide you on how to use two quite powerful indicators: OI (Open Interest) and CVD (Cumulative Volume Delta). These are real on-chain tools, especially useful when you want to find small-cap tokens with the potential for a surge.

First, understand these two concepts clearly. OI is the number of open contracts in the market. When OI increases, it means money is flowing in; when OI decreases, money is flowing out. CVD, on the other hand, measures the difference between buy volume and sell volume. Note that CVD is not based on price, but on accumulated volume in the buy-sell direction. In trending markets, CVD will show clear positive or negative values; in sideways markets, it will oscillate around zero.

Both indicators should be viewed together for effectiveness. There are four main scenarios: if OI increases and CVD increases, buyers are strong; if OI increases but CVD decreases, sellers are in control; if OI decreases and CVD decreases, long positions are being liquidated; if OI decreases but CVD increases, short positions are closing. Of course, these indicators are only truly useful in volatile markets and with tokens that have good liquidity.

Now, I will show you how to practice. First, go to Velo Data’s Market page and select Small Caps if you want to find high-volatility altcoins. You can also choose shorter timeframes like 1H or 4H.

Next, look at the "OI Change" chart. This indicator shows whether buyers or sellers are gaining strength. When OI changes positively, buyers are taking control; when negative, sellers are. However, relying solely on OI is not enough. For example, take RLC (current price $0.45, up 3.63% in 24h) — this token has increasing OI, but when checking CVD, I see it’s gradually decreasing. Logically, when CVD drops while OI rises, it means sellers are opening more positions, so the price might go down. Therefore, RLC is not a good choice at that moment.

Third, look at the "OI-Normalized CVD" chart. This is a normalized version of CVD, helping you see more clearly who is more active in the market — buyers or sellers. If the bulls (buyers) act strongly, the token price is likely to rise.

Let me give another example: ARPA (current price $0.01, up 0.94% in 24h). When ARPA’s OI increases and CVD also starts to rise, that’s a positive signal. Theoretically, ARPA’s price could increase slightly in the near future. However, since CVD is still below zero, it indicates sellers still dominate, so this rally might be limited. If the bulls continue to push through, the uptrend could last longer.

An important note: if you trade short-term, always set profit targets and stop-loss levels. CVD is only a reference based on historical data, but the actual market always has unpredictable surprises. To increase reliability, combine OI and CVD with other indicators like EMA on the chart.

Actually, this method is just a supporting tool. The most important thing is to understand the market well, manage risks properly, and never invest all your capital in one position. The crypto market is extremely risky, so always be cautious and follow local regulations.