Indicator Overview

The Momentum Coalescence indicator evaluates the equal-weighted Top 10 Altcoin Index’s price momentum by combining: Fast Rate of Change (ROC), Slow Rate of Change (ROC), Volume delta, and Volatility Directional Bias (VDB).

This index compiles the following top 10 utility-focused altcoins (as of December 2025):

1. Ethereum (ETH)

2. XRP (XRP)

3. BNB (BNB)

4. Solana (SOL)

5. Cardano (ADA)

6. Chainlink (LINK)

7. TRON (TRX)

8. Monero (XMR)

9. Avalanche (AVAX)

10. Litecoin (LTC)

The index price is calculated as the average of these 10 altcoins’ prices (equal weighting).

It creates a normalised score to reflect the convergence of bullish or bearish forces in the altcoin sector. This indicator is crucial for understanding shifts in sector-wide market sentiment, as it captures both price and volume dynamics, helping investors identify potential trend reversals or continuations across these established utility-driven assets.

How To Use

Historically, positive coalescence scores above 0.5 often signal strong bullish momentum, coinciding with rallies in the altcoin index. Negative scores below -0.5 may indicate bearish pressure, often seen during corrections. You can use extreme readings to anticipate reversals: overbought conditions (high positive scores) suggest caution or profit-taking across the basket, while oversold levels (low negative scores) may present buying opportunities. The histogram or line, with a neutral line at zero, helps visualise momentum shifts in this fundamentally oriented yet volatile altcoin sector.