Everyone wants to find a few breakthrough altcoins before they explode, but in reality, it's not that easy. I often see influencers online talking about coins that might go up or down next, but they rarely reveal their specific methods. Here, I want to share a more practical approach — using on-chain indicators like OI and CVD for analysis.

First, let's understand these two concepts clearly. OI or Open Interest refers to the number of open contracts. When OI increases, it means money is flowing into the market; when OI decreases, money is leaving. CVD — Cumulative Delta Volume — is the difference between buying volume and selling volume. The important thing is that CVD is based on accumulated buy and sell pressure, not price. In trending markets, CVD will show positive or negative values; in non-trending markets, it will oscillate around zero.

These two indicators should be considered together. If OI increases and CVD increases, that’s a buy signal. If OI increases but CVD decreases, sellers are entering. When OI decreases and CVD decreases, long positions are being liquidated. If OI decreases but CVD increases, short positions are closing. Of course, these indicators work best in highly volatile markets with good liquidity.

Now, let’s get into practice. First, go to the Marketplace page and select the cap category you’re interested in — Small Caps if you’re looking for coins with high volatility. Choose a shorter timeframe like 1H or 4H. Next, select the OI Change chart to see the strength of buyers and sellers. Positive values indicate increasing buying pressure, negative values indicate increasing selling pressure. I usually filter tokens with positive OI change and an upward trend.

The next step is to observe normalized CVD — OI-Normalized CVD. This indicator shows which side traders are more active. If the bulls (buyers) are acting strongly, the price may go up. For example, with RLC, I see CVD gradually decreasing, which suggests more sellers are involved, so it’s not suitable to enter at that moment.

Simple rule: if OI increases AND CVD also increases, that’s a stronger signal to consider. Take ARPA as an example — OI is rising and CVD has started to increase recently. Based on these indicators, we can predict a slight short-term price increase. However, since CVD is still below zero, sellers still hold the advantage, so the rally might not last long unless the bulls continue to push through.

An important note: if trading short-term, take profits and set stop-losses immediately. These indicators are just references based on data — the actual market cannot be fully predicted. To be more confident, combine OI and CVD with other indicators like EMA on the chart to get a more comprehensive view.

Remember, this analysis is for learning and sharing knowledge, not investment advice. The cryptocurrency market is very risky, handle it wisely, and always be aware of the risks.