VARAUSD dropped a massive 85% after initial pump when listed on Coinbase. We will mark this bottom as correlation point 1 even though as I will demonstrate the market for VARA is out of balance and is due a significant pump.
On the left VARA percentages are shown.
On the right MATIC percentages are shown.
In march notice that from the correlated high (not the ultimate high) from march until November VARA dropped 88%.
In the same time period MATIC dropped a significant 78%. This leaves VARA at this point a negative 11%
The pump TRUMP PUMP that started in november delivered a 154% pump for VARA and a 163% pump for MATIC a difference of negative 11% roughly. Currently, VARA remains 10% negative to MATIC. This is not the result of VARA being a less favorable buy but rather that due to it’s low market cap movements are exagerated and wild.
In this regard the Market owes VARA approximately 10% to 20% upward movement which will come unless VARA pulls MATIC down to an equivalent level.
With regards to correlation, both assets pull upon each other like the moon and the earth pull upon each other. One is bigger and has more impact on the other but ultimately persistance of the lesser or smaller asset can aggressively pull the other down especially when very large market moving INDEXES such as DXY and BTC have substantial negative moves.
Currently today at close last night, DXY and USDX closed high again hitting a very heavy resistance zone. This is bullish for BTC which is why between today and Tuesday we could see BTC move up again.
This along with negative movement in the FX currency markets our altcoin and risk assets could finally see a little bit of light since we several markets have come to a head and a decision point.
I am not a financial advisor, stay safe my friends.