sorry for noob question
A coin in order to be x100 must have a market cap under 50 Millions?
You should consider only the market cap or also the coins supply?
For example an ICO with 20 millions of coin and a market cap under 20 Milion can rise x100?
iT's just an example to understand
thanks
mcap
"Market capitalization refers the total dollar market value of a company's outstanding shares. Commonly referred to as "market cap," it is calculated by multiplying a company's shares outstanding by the current market price of one share. The investment community uses this figure to determine a company's size, as opposed to using sales or total asset figures.
Investopedia"
max suply total available/minable coins
circulating supply the amount of coins in circulation also amount of coins stored somewhere
If you will make a simple script to monitor those values on markets you will see that:
1. mcap/circulating supply is equal price, price on markets sometimes reacts faster than change in cap, sometimes slower, but like with RDD for example, you can see huge 100% jump in mcap and price is changing few minutes later. Why? Because there will be more offers with higher price, however not every one will be able to react with changing offers fast enough.
2. if supply is raising and mcap is not raising - price will drop
3. if they are burning coins so supply will fall - price will raise
Shortly yes it is true for short term, because markets are reacting slower. It is not always working, there are many other things that impact price.
Now imagine - there is 1000 coins and people wants to pay 0.00001 BTC for one, and for some reason new amount of 1000 coins appears, from ICO or mining, and people just want to make cash instead of investing, they are selling it lower than price - mcap will fall and supply will raise. The funny thing is those rules I am using for middle and short term trading, are working very good for coins that are mostly traded on bittrex (90%+ volume on bittrex).
But it is something you can refer to. You can for example take a company which is selling coin at $0.01, predict that there will be 1bln coins when they will enter to markets, and predict value of company. 10mln cap may be too low or too high, however, if company in eyes of investors isn't worth more then 10mln the price will be oscillating around mcap/supply, otherwise price will drastically raise, because people will be selling for a price they think is valuable enough. But new coins supply on market doesn't mean that company value is now for example doubled, rather that coin price will be dropping to around 50%. Similar when you are predicting that company and its solution is undervalued, and is worth twice, however you are also predicting that coin supply will raise 4x, there is no way that coin will keep it price, it will drop ~50%.
Another thing that I noticed, if mcap for coin is based on BTC or resources are stored in BTC, it will also impact price when there are changes in BTC. Because when 100 coin is worth 0.1BTC - it means $400 for the rest of the world, when BTC drops 10%, mcap staying at 0.1BTC will be worth $360. So the price will fall too. You can see this as relation of altcoins to BTC changes, some are raising some are falling - IMHO it depends on what currency MCAP is based on. USD based will raise, BTC based will fall, some companies can change once for a while this relation, so coin following BTC will start to behave in opposite way. So there you can see that when BTC is drasticaly raising, those coins will raise with formula BTC raise x coin raise. This is what happend around march-may this year.
Watching markets you can also notice, that in some magic way if mcap is changing all the offers are reacting. How it is possible that few hundred people on earth react similary in same time (in seconds)?
All of those are my own observations, and I am using it in trading very successfully.
