I share with you some charting tool that uses Market/Volume Profile for ADA Price using Cardano transactions as Volume.
I am not a dev but I am learning some JS and combined what I know of Cardano and Trading as exercise.
The scope is to visualise how transactions are distributed over Price & Time (binance data).
http://herdtrails.com/cardano/usdt
These are weekly profiles and can be useful to underpin abnormal transactions in the transaction distribution over the week in relation to price.
Not sure will be useful but I am trying.
In the image below you can see a few weeks where the transactions follow the market profile shape as expected since the thicker the market profile the more time was spent at that price level, allowing for more transactions to stack up.
In the last week you can see asymmetry between the Market Profile (made of Time Price Opportunities squares) and the transactions distribution.
Will be interesting to see if that can signal price moves. (e.g. price moves means many will have to send or withdraw their ADAs from exchanges.)
In the future I will also add Binance Volume profile. Just a Work in Porgress for now.
I am aware it is not possible to know which Tx-output was a real transaction and which one was just a reminder transaction, but the hope is that on average the ratio of Change-Tx-output/Actual-Tx-output stays similar.
Either way would be nice to hear this forum harsh opinion.
Rather than the total ADA sent, perhaps it is better to plot how fees are distributed over price or simply the number of Txs.
It is currently possible to see this options as well.
This charting method allows to visualise how the value in USD has accumulated over price&time using the transaction/fees USD value at the moment when the Tx has occured, rather than the ADA amount (I use a price average every 15 minutes).
In my opinion this can visualise if what drives the transactions volume is ADA or rather its value in USD. For instance if it’s ADA what counts, the amount of USD stacked in the profile should diminish with lower prices but if stays similar then people is sending ADA based on the USD value. Perhaps this would be useful only on much higher timeframes, perhaps not weekly.
For instance:
If 100ADA is sent when price is at $0.04, I will stack $4.00 on the market profile.
If 100ADA is sent when price is at $0.10, I will stack £10.00 on the market profile.
There is only 5 weeks available for now, that’s all I could get from Binance for free. Any advise to how to get more price historical data will be welcomed.
I will record prices every day, twice a day, from now on.
If you want to know more about Market Profile I suggest you read this page from Jim Dalton who is a Market Profile guru, a technique mainly used to read Futures data for discretional trading.