When a token is announced to be listed on a major centralized exchange, the token price typically increases due to anticipation.
We’ve found that Candlestick indicators can help you trade better both before and after the listing.
Here are some key metrics to track.
Before listing :
Follow Insiders Before CEX Listing
Centralized exchanges cannot guarantee transparency of information. When a token is about to be listed, insiders may know the news earlier than the public. Therefore, you can discover some “Stealth Money” addresses’ front-running behavior through on-chain data.
Here are the cases & tips we shared previously:
Track Net Buy When CEX Listing
Centralized exchanges typically announce their upcoming listings on social media before trading is open.
During this period, some traders may be influenced by emotions and start buying on decentralized exchanges (DEX).
You can monitor this phenomenon in real-time using the DEX Net Buy metric.
For example. on Feb 8, Coinbase released the $VOXEL listing announcement at 4:51 PM Feb 8 UTC.
The DEX Net Buy Value indicator surged 1,244x & reached a 24-hour high at 4:55 PM – 15 mins before the price peaked.
At the same time, the $RDNT Net buy value on BNBChain was $268K.
Track CEX Flows & Liquidity After Listing
As the information about the listing spreads and trading opens up, holders will move their tokens from their on-chain wallets to centralized exchanges for selling.
Changes in liquidity are also worth paying attention to.
If liquidity providers tend to sell tokens, they will remove liquidity first.
These changes in liquidity can be seen as positive signals. Influenced by the CEX listing news, there is an increase in DEX trading, and liquidity providers add liquidity to increase their fee revenue instead of selling their tokens.