Everyone in our field also hopes to discover an altcoin before it explodes, before the market recognizes its value. Major influencers online often say "this coin might go up," but they rarely reveal their specific methods.

I’ve been following some insightful people in this space; they never run ads or call for orders from projects. Instead, they only share knowledge and practical analysis tools. Today, I want to share a specific method I find quite effective: combining the OI and CVD indicators to identify altcoins with potential for a sharp rise.

First, let’s understand what these two indicators are. OI (Open Interest) refers to the number of open contracts in the market. When OI increases, it means more money is flowing in; when OI decreases, money is leaving. CVD (Cumulative Volume Delta) is a bit more complex — it shows the difference between buying volume and selling volume. The key point is that CVD is based on the accumulation of trading direction, not price. In trending markets, the CVD chart will show clear positive or negative values, while in sideways markets, it oscillates around zero.

OI and CVD should be viewed together. There are four main scenarios: First, OI rising with CVD rising = buyers are opening positions (price may continue to increase). Second, OI rising but CVD falling = sellers are opening positions (price may decrease). Third, OI falling and CVD falling = liquidation of long positions (selling pressure). Fourth, OI falling but CVD rising = closing short positions (potentially a positive sign).

The important thing is that OI and CVD work best on highly volatile altcoins with good liquidity. On quiet tokens, they are almost useless.

Now, let’s get into practical application. I use Velo Data for illustration. The first step, go to the Marketplace, select Small Caps if you want to find highly volatile altcoins, then choose a short timeframe like 1H or 4H. The second step, select the OI Change chart (Open Interest change). When OI increases (positive value), buying strength is rising. When OI decreases (negative value), selling pressure dominates. This gives us an initial market direction hint.

The third step, look at the normalized CVD chart (OI-Normalized CVD). This shows more clearly who is in control — buyers or sellers. If CVD is trending upward, bulls (buyers) are in control. If CVD is trending downward, bears (sellers) are stronger.

Take RLC as an example. I notice its OI is increasing, but CVD is gradually decreasing. According to scenario two, this means sellers are opening positions, and the price might continue to decline. Therefore, RLC is not a good choice at that moment. RLC’s current price is $0.44, up 2.70% in 24 hours, but the short-term trend needs further monitoring.

Conversely, ARPA is another example. Its OI is increasing, and CVD is also starting to rise. This is a more positive signal — buyers are opening positions and may continue. However, if CVD remains below zero, it means sellers still dominate. ARPA’s current price is $0.01, down 1.52% in 24 hours, but if CVD continues to increase, a short-term upward move could be imminent.

A crucial note: OI and CVD are only reference indicators based on historical data. The actual market cannot be fully predicted. For short-term trading, always take profits and set stop-losses. To be more confident, you can combine OI and CVD with other indicators like EMA on the chart for a more comprehensive view.

It cannot be overstated: cryptocurrencies are a highly risky field. Trade wisely, improve your risk management awareness, and comply with your country’s laws. This article is for educational purposes and sharing experiences, not investment advice.