The MANTRA (OM) token’s wild crash on Apr 13, 2025, shocked the crypto world. Discover the causes, fallout, and what’s next in MANTRA’s road to recovery.

In the morning and daytime hours of Apr 13, 2025, the MANTRA blockchain's native token, OM, sat at a respectable market cap of $6 billion, making it the third-highest-ranked cryptocurrency in the 

 (RWA) category, the area the platform specializes in. Everything seemed like smooth sailing for the token.

Then, just after 6 PM UTC, the price of the OM token suddenly began to free-fall, declining from nearly $6 to about $0.50 in the space of just two hours.

A project that started the day as one of the top players in the RWA field was now worth 90% less as the evening approached. OM's abrupt, sharp crash immediately caught the market's attention, with speculation of a 

However, MANTRA's CEO, John Patrick Mullin, immediately sprang into action for PR damage control on social media, reassuring the public that the team members weren’t dumping OM tokens at all. Instead, MANTRA's founder and CEO alleged that deliberate actions of some 

 (CEXs) had caused the catastrophic plunge.

As of our coverage date of Apr 23, 2025, this is a developing story. In this article, we’ll establish what actually happened, who's involved and what awaits the OM token in the foreseeable future.

 decentralized network dedicated to RWA tokenization and utilization in compliance with real-world regulatory requirements.

 It features high scalability and low transaction fees. The project is one of the earliest initiatives dedicated to RWA use via blockchain technology. Originally, MANTRA debuted as a 

 (ETH) in August 2020. In October 2024, the project migrated to its own dedicated Layer 1 platform, the MANTRA Chain. The MANTRA blockchain is based on the Cosmos SDK framework, and is part of the wider 

The MANTRA ecosystem's main products include MANTRA DEX, a 

 (DEX); a digital identity (DID) management tool; a compliant token development and management solution; and a comprehensive compliance and permissioning system. MANTRA has also partnered with global powerhouses like Google Cloud, and with DAMAC Properties, one of Dubai's most prominent developers, to propel innovative solutions for 

Starting in late 2024, right after its own dedicated mainnet launch, MANTRA had become a significant player in the RWA corner of 

 (DeFi). By late February 2025, the platform’s native OM token had climbed to a value of nearly $9, with its market cap peaking at around $8.2 billion. Before the fateful events of Apr 13, 2025, OM was the third-highest-capped crypto in the RWA category, trading at $6.27, with a market cap of slightly over $6 billion, according to the CoinGecko portal.

In the evening hours (UTC time) of Apr 13, 2025, OM began to lose its value precipitously, dive-bombing from over $6 to about $0.52 in the space of two hours. The token’s market cap fell to slightly under half a billion dollars — a loss of more than 90%.

CEO John Mullin was quickly online, reassuring the crypto community that no team member had sold their OM holdings, and that this wasn’t a case of the bad ol’ rug pull. Instead, Mullin alluded that after OM tokens were moved to two leading CEXs (Binance and OKX) to use as collateral, the exchanges initiated a cascade of 

 of positions backed by the token. Both exchanges refuted the allegations, and connected OM’s price collapse to its recent unusually high price 

, and significant tokenomics changes made to OM in October 2024 that greatly undermined its value.

As a chain of liquidations took place, the token’s price started to plummet, causing significant panic that quickly led to further price drops. The situation only stabilized closer to the end of the day, with OM’s price remaining under $1. As of Apr 23, it’s trading at $0.5543 — a far cry from its rate of over $6 just two weeks ago.

After investigating, crypto analytics firm Lookonchain concluded that 17 wallets had deposited 43.6 million OM tokens (4.5% of the token's circulating supply) into the implicated exchanges. Two of these wallets are believed to belong to Laser Digital, one of MANTRA's investors. Another investor in the project, Shorooq Partners, is also suspected to be among the 17 wallets. Both Shorooq and Laser Digital have denied the allegations.

Although the price plunge was immediately compared to the 2022 collapse of the 

 (LUNA) blockchain, many analysts point out that the two crashes are fundamentally different. Terra's crash resulted from structural abnormalities in the 

 regulating UST, the project's stablecoin. In contrast, OM's fiasco is suspected to be the direct result of market-driven manipulation by 

, and possibly exchanges. No security breach, disruption to services or data, or other adverse structural events have occurred on the platform.

While this development is unprecedented for the project, MANTRA has been embroiled in other controversies throughout its history. One of these was its 

, first announced in August 2024 and then delayed multiple times. Around 50% of the wallets believed to be bots were cut off from the airdrop list. However, many considered the bot-culling process to have been conducted without much proof.

There have also been reports of vote rigging in the project's governance system in a bid to obscure MANTRA’s centralized model of profit allocation. Additionally, some analysts have accused the project of "forced bridging" to manipulate the market price. Platform users had to migrate their Ethereum-based OM tokens to MANTRA's native OM tokens via 

, which would increase gas fees and allow the project team to control the token's circulation pace.

How is MANTRA (OM) headed toward recovery?

MANTRA’s CEO rapidly reassured users that the team is now working hard to jump-start the token’s recovery. On Apr 14, 2025, Mullin unveiled plans to initiate a buyback scheme, along with the intent to burn all OM tokens held by the project team. The team's supply totals 300 million tokens, representing about 17% of the total supply.

He also denied factually incorrect assertions circulating online that the team effectively controls 90% of OM's supply. Mullin further assured the public that no large-scale selling events by investors have occurred.

As OM’s value has stayed firmly under $1, it remains to be seen how these PR efforts — as well as the planned buyback and burn — will affect the token’s future.

 as a swap pair with USDT, or on the Derivatives market as the 

Naturally, given the ongoing situation with the OM token, buying OM is at your own discretion, as right now the token is truly for the adventurous and brave at heart.

As of Apr 23, 2025, the OM token is trading at $0.5543, 93.8% lower than its ATH of $8.99 on Feb 23, 2025, and 3,138.8% higher than its ATL of $0.01726 on Oct 12, 2023.

Curiously, most crypto price prediction portals are optimistic about the OM token's long-term prospects. DigitalCoinPrice 

 of $1.81 in 2027 and $2.82 in 2030, whilePricePrediction 

It's hard to verify all the allegations flying around regarding the involvement of exchanges and key investors in the MANTRA OM incident. What matters at this stage is that the project team has been quick and proactive in injecting transparency and clarity into the situation.

The free fall in the token's price seems to be over by now. In fact, OM’s decline was over within hours of the incident. Moreover, unlike Terra's LUNA and UST coins, OM hasn't become worthless. All these factors point to potential stabilization and recovery ahead. The question now is: Will the pace and magnitude of the recovery be enough to save the project in the long term? At this early stage after the collapse, few people could answer the question with confidence. We'll eagerly await the developments over the next few weeks to see if MANTRA finds its way out of the woods. 

Intermediate

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MANTRA (OM): Understanding its wild ride and road to recovery

In this article, we explore WalletConnect's features, its native token (WCT) and how you can trade WCT on Bybit Spot and Futures.​

WalletConnect is an open source bridging protocol that facilitates secure connections between digital wallets and 

 (DApps). With over 38 million unique active wallets and 57,000 supported apps, it’s getting noticed by the crypto community. In this article, we explore WalletConnect's features, its native token (WCT) and how you can trade WCT on Bybit.​

 protocol that allows users to connect their mobile wallets to DApps via QR code. This eliminates the need for browser extensions, and enhances security by keeping 

The protocol supports a wide range of wallets and DApps, making it a versatile tool for users navigating DeFi and web3.

 is essentially a decentralized infrastructure that facilitates a uniformed way for users to easily connect their crypto wallets with thousands of DApps. It operates through a network of

 that relay messages, ensuring reliable and secure connections. The network's design emphasizes scalability and resilience, catering to the growing demands of DeFi. 

When a user initiates a connection between their wallet and a DApp, WalletConnect establishes a secure session through a relay server that enables encrypted communication, allowing users to interact with DApps directly from their wallets. 

The network's architecture ensures that messages are transmitted efficiently, maintaining a seamless user experience.​

The WalletConnect ecosystem comprises various stakeholders, including node operators, wallet providers and DApp developers. Node operators play a crucial role by maintaining the network's infrastructure and relaying messages. 

To incentivize participation, the network implements a rewards mechanism whereby node operators earn WCT tokens, based on their performance and contribution. Prominent organizations like Consensys, Ledger and Figment are among the network's node operators, underscoring its robustness and reliability.​

 is the native utility and governance token of the WalletConnect network. It has a total supply of 1 billion, 

Initially, WCT is nontransferable to ensure that tokens remain within the WalletConnect ecosystem, supporting its focus on network functionality and development. Based on discussions within the community, transfers will be enabled based on community consensus and future governance decisions.

Where to buy the WalletConnect token (WCT)

 on Bybit Spot, and as a Perpetual contract with up to 75x 

. Bybit provides a secure and user-friendly platform for buying and selling WCT, allowing users to participate in the WalletConnect ecosystem. 

How to trade the WalletConnect token (WCT) on Bybit

Bybit's platform ensures efficient execution and provides various tools to assist users in their trading journey with ease.​ 

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WalletConnect (WCT): Bridging web3 beyond wallets and DApps

Circle has launched the Circle Payments Network (CPN), a global payment solution designed to streamline cross-border transactions using stablecoins like USDC and EURC for real-time settlement. 

The S&P 500 rose 2.51% as investor confidence improved following President Trump’s support for Fed Chair Powell and hints of easing U.S.-China trade tensions, despite tempered optimism and Tesla’s earnings miss. Gold rebounds toward $3,400 as the US Dollar weakens and investor caution lingers over US-China trade and Fed concerns. Technicals suggest a possible pullback, with focus shifting to upcoming S&P Global PMI data. The Coindesk Indices, which tracks the broader crypto market, rose 7.46%, with Bitcoin and Ether up 4.68% and 7.70%, respectively, in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is DEEP, up 122.1%, following the launch of DeepBook v3.1 on Sui, which unlocks permissionless pools, enhanced balance management, and cost-efficiency for DeFi.

DeepBook (DEEP), launched on July 12, 2023,  is Sui’s native liquidity layer, using a central limit order book to enable high-throughput, low-slippage, and low-fee trading. 

, introduces several key upgrades: permissionless pools, revamped fee mechanics, and enhanced balance management. These changes make DeepBook more accessible, composable, and cost-efficient for DeFi users. Permissionless pools allow anyone to create custom trading pairs, while the enhanced balance manager supports third-party liquidations and improves protocol stability and user experience.

Check out the latest prices, charts, and data of 

, a global payment solution designed to streamline cross-border transactions using stablecoins like USDC and EURC for real-time settlement. CPN offers faster, programmable, secure, and always-available money movement for financial institutions. It supports services like invoice payments, remittances, treasury services, and payroll payouts. Over 20 design partners, including dLocal, WorldRemit, and BVNK, are contributing to building a more efficient global payments infrastructure.

Yesterday, Bitcoin spot ETFs saw $719.2M in total inflows, with $654.1M from non-GBTC funds and $65.1M from GBTC.

 its incentivized testnet, allowing users to earn $SO tokens by testing its cross-chain lending platform. By supplying and borrowing assets across chains and completing quests, participants earn "Seeds," which will convert to $SO at TGE. Powered by LayerZero, Soul aims to unify liquidity across blockchains.

Beginner

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Circle launches Circle Payments Network for faster, secure global transactions using stablecoins

VeChain (VET) is a blockchain platform focused on sustainability, using eco-friendly technology to support green initiatives across industries and drive a more sustainable future.

Sustainability is now the name of the game across many industries. The blockchain industry is one of them, with several projects aiming to reduce the energy impact of their operations or support green causes in other ways. However, on closer inspection, sustainability has received much less attention in the world of blockchain technology than many people may assume. Indeed, the industry's two leading data portals, CoinGecko and CoinMarketCap, have no "Sustainability" or similar category, despite coming up with hundreds of other classifications.

Some smaller-cap projects outside of the top 100, such as 

 (IOTA), do focus on supporting environmental causes. But in the entire list of top 100 cryptocurrencies by market cap, only one project can confidently be described as having sustainability as its key pillar — 

With a market cap of $2 billion (as of the time of writing on Apr 22, 2025), VeChain stands head and shoulders above any other crypto project in the sustainability niche. The project has been fully operational since 2018, and is among the oldest environmentally focused blockchain initiatives. In short, if we talk about sustainability and blockchain, it would be disingenuous not to mention VeChain and its 

Having championed green blockchain causes since 2018, VeChain announced a significant upgrade initiative in late 2024 to be rolled out in stages during 2025. Called Renaissance, it’s envisioned to further solidify VeChain's position as the leader of eco-friendly blockchain use and introduce a host of technical improvements. In fact, 2025 is the year of the most fundamental upgrade to this notable industry player in its entire history on the market, so it's precisely the time to revisit this project in our coverage.

VeChain (VET) is a decentralized project designed to support sustainability-focused blockchain use cases across various industry verticals.

 The company was first conceptualized and founded as a blockchain project in 2015 by Chinese technology professional Sunny Lu. It launched its Layer 1 network, VeChainThor (VTHO), in mid-2018, becoming one of the first decentralized initiatives to support eco-friendly applications on-chain. The VeChainThor network features low transaction fees and high levels of scalability.

For years, the VeChain blockchain has remained probably the leading decentralized platform in the niche of sustainability. As of April 2025, it retains the leadership position, and is ranked 56th among all cryptocurrencies, with a market cap of $2 billion.

VeChain's sustainable blockchain technology

Many blockchains claiming to support environmental causes typically use the 

, which is indeed much more energy-efficient than the power-hungry 

 (BTC). By using PoS, these blockchains have boldly announced that their energy use is much lower than Bitcoin's. While this is true, these platforms are essentially general-purpose networks that don't specifically design their operations with any particular sustainability use case in mind.

Instead of these two typical consensus mechanisms, the VeChainThor blockchain uses 

 (PoA), touted to be even more energy-efficient than the standard PoS employed by 

 chains. In a typical PoA consensus, a smaller number of validators with "authority" — i.e., a history of reliable behavior on the network — are entrusted to process blocks. This is in contrast to PoS, whereby many validators take part in the staking contest to outperform each other in terms of token holdings. They then receive the right to validate the next block, and have to constantly align their consensus process with other 

As a result, PoS is usually less energy-efficient than PoA. VeChain's PoA model elegantly combines efficient processing, minimal energy use and high levels of enterprise-grade security.

The VeChainThor blockchain network's processing engine also features compatibility with the 

 (EVM), making cross-chain communication with the Ethereum world much easier for VeChain developers and 

PoA block validation isn’t the only sustainability-minded feature of VeChain. Unlike many other popular chains, VeChain also directly enables sustainability use cases, primarily by utilizing its tamperproof and transparent data-tracking mechanism. Thus, enterprises across different industries can track and reliably verify the origin of goods and their sustainability status for eco-friendly supply chain management. For instance, supermarket chains can use the platform to track and verify the carbon footprint of the produce they source; logistics companies can calculate the overall emissions generated along their supply chains; and fashion brands can track sustainable sourcing of materials used for their product lines.

Besides its own blockchain, the project also offers a blockchain-as-a-service (BaaS) platform, VeChain ToolChain, to help businesses integrate VeChain's technology into their business processes via standardized smart contract services.

To further position itself as a champion of sustainability, VeChain launched 

 represents an on-chain ecosystem of DApps that reward VeChain users for completing various eco-friendly tasks, such as using reusable coffee cups, shopping for organic products, picking litter off streets and more. VeBetterDAO is the project’s foray into the individual consumer side of environmentalism, which complements the VeChain platform’s long-standing sustainability features for the enterprise world.

In late 2024, VeChain first announced its planned multi-stage upgrade, Renaissance, to make the platform even more efficient. Its changes are envisioned to take place gradually throughout 2025, and possibly beyond. The Renaissance upgrade touches many parts of the platform, with three key areas involved — a new VeChain staking and node model, technical updates and changes to the dual token mechanism. We'll cover the first two areas below, and the changes to VeChain’s tokenomics in the next section.

VeChain’s PoA block validation model uses a group of 101 trusted Authority Masternodes (AMs) who will fully transition to Validators under the new Renaissance model by December 2025. Each Authority Masternode is approved by the VeChain Foundation. These nodes are responsible for generating transaction blocks. You’ll need to 

 at least 25 million VET to participate in block production, which occurs in fixed 14-day cycles.

Under the platform’s pre-Renaissance model, there are two more types of specialized nodes — Economic and X-Nodes — who stake their tokens to a selected AM/Validator and participate in 

 on the platform. After the Renaissance upgrade is fully rolled out, Economic nodes and X-Nodes will be replaced by a tiered system of Delegator nodes.

Delegators will need to stake a certain amount of VET tokens to mint Delegator 

, which will entitle them to different grades of staking reward multipliers. The more you stake, the higher grade of NFT you receive, and the higher your staking rewards will be. When blocks are produced, AMs/Validators will receive 30% of the total block reward, with the remaining 70% going to holders of the Delegator NFTs.

The image below shows the new Delegator NFT–tiered model, with minimum VET staking requirements and reward multipliers.

While the VeChainThor network is EVM-compatible, there are still differences between its technical parameters and the standard EVM used by Ethereum. For this reason, the Renaissance upgrade aims to reach full EVM compatibility, including implementing the JSON-RPC (

remote procedure call) extensively employed within the Ethereum blockchain.

As part of the Renaissance upgrade, the project will also introduce a new set of tools to achieve more seamless cross-chain capabilities. This will involve integrating new 

The VeChain token model has always been based on two cryptocurrencies: VET and VTHO. VET is the 

 that acts as the main means of value storage and transfer on the platform, while VTHO is used to pay for gas. Now, the Renaissance upgrade also changes the way the dual-token mechanism operates.

Before the upgrade fully kicks in, VTHO is still generated by simply holding VET. After the Renaissance, only staked VET will generate new VTHO for the holder. This should better align VTHO with the active participation of users on the platform. VTHO's inflation rate will also be cut by over 70%, as its issuance will be aligned to a new emission model that considers the total amount of VET staked on the platform.

To further reduce the inflationary properties of VTHO, 100% of all base transaction fees on the network, which are all paid with VTHO, will be 

VET is the platform’s value transfer and storage token. It’s also used for governance and access to various features and apps on the network. VET is a supply-capped token with a max supply of just over 86.7 billion. These properties will not change following the Renaissance upgrade.

VTHO, which is used to pay for gas fees on VeChainThor, is an inflationary token with an uncapped supply. It currently has a total supply of almost 88,7 billion. As noted above, after Renaissance, VTHO will be generated via staking only, and will feature a burn mechanism to reduce its inflation rate.

 as a swap pair with USDT, and on the Derivatives market as the 

In addition, you can take advantage of Bybit’s event dedicated to the VET token to grab a share of a 

. New users can earn VET rewards by accumulating a deposit volume of at least 5,000 VET, or by depositing at least 100 USDT and trading 100 USDT worth of VET via their first Spot trade using their Bybit account. Meanwhile, existing users can also qualify for rewards by trading at least 500 USDT worth of VET on the Bybit Spot market. The event runs through Apr 28, 2025, 9AM UTC.

As of Apr 23, 2025, the VET token is trading at $0.02576, which is 90.8% lower than its ATH of $0.281 on Apr 19, 2021, and 1,243.2% higher than its ATL of $0.001917 on Mar 13, 2020.

Long-term price forecasts for VET are mostly bullish. DigitalCoinPrice 

 of $0.088 in 2027 and $0.14 in 2030, while PricePrediction 

In the long term, VET might even rise to $1, at least according to PricePrediction’s forecast. Its portal is highly optimistic, estimating that VET will hit the $1 mark in 2034.

You might consider investing in the VeChain token VET based on the following:

When Sunny Lu created VeChain in 2015, his vision focused on sustainability issues. VeChain's work in this area has led to the creation of the first decentralized network truly dedicated to making a tangible environmental impact. The entire VeChain ecosystem — including the VeChainThor blockchain platform, VeBetterDAO and VeChain Toolchain — continues to serve as a significant enabler of sustainable technology in the business world.

Now, with the Renaissance upgrade being rolled out for the duration of 2025, VeChain aims to solidify its leadership in this sphere. With the Renaissance upon us, it's hard to see any blockchain platform that could challenge VeChain in the area of sustainability anytime soon.

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What is VeChain (VET): Building a sustainable future for all

Trading

VWAP helps determine if a market trend is overbought or oversold. Traders can find good entries in the market with VWAP & determine if the asset has gone too far too fast to exit the market.

Do you want to unleash the full potential of a powerful trading tool that combines price and volume data to help you make informed trading decisions? Enter the world of the Volume Weighted Average Price (VWAP) indicator. In this comprehensive guide, we will explore the fascinating intricacies of this dynamic indicator, its components, calculations, and how it can be used to identify trading opportunities. Get ready to dive deep into the realm of VWAP and enhance your trading arsenal with this indispensable tool.

The Volume Weighted Average Price (VWAP) indicator provides traders with insights into the relative value of an asset based on trades placed, helping them time their entries and exits in the market. This metric is calculated during the trading day, from open to close, offering a real-time dynamic indicator for day traders, institutions, and algorithms alike.

The elements of VWAP include the mean price, amount, and duration, which together provide a comprehensive view of the price and volume action of a security during a trading session. The combination of price action and volume data in VWAP produces two crucial signals: overbought and oversold levels, plus support and resistance. Grasping these signals equips traders with the ability to seize market opportunities and curb potential losses.

, the head trader at Abel Noser, for the Ford Motor Company, the VWAP indicator calculates the average price of a security based on both its volume and price. The purpose of utilizing the VWAP in trading decisions is to:

This widely-used technical indicator is particularly useful for intraday trading, as it helps in analyzing intraday price movement.

Stock markets, futures markets, and other active trading environments throughout the day, characterized by significant trading volume and liquidity, are where the VWAP indicator proves most effective. As it calculates the average price based on both volume and price, the VWAP differs from other price-volume indicators, providing a more thorough perspective of a security’s average price during a specific time period.

The core elements of the VWAP indicator are volume, weighting, and average. To calculate the VWAP line, the average of the low price, high price, and closing price for each period is multiplied by the volume for that period. The weighting of volume in the calculation ensures that the VWAP reflects the influence of higher volume trades more precisely, providing a more accurate average price.

Volume and price, the key components of VWAP, yield insights into market trends, the behavior of institutional trading, and sections with liquidity and substantial trading activity. This information allows traders to assess the average price at which a security has traded and evaluate trade execution quality, thereby facilitating the detection of overbought or oversold conditions.

The VWAP line calculation involves a specific formula that takes into account price and volume data to create a line on the price chart. With the vwap calculated, this line is a running total of the price of each trade multiplied by the volume of that trade, divided by the total volume traded for the day. This process is known as the vwap calculation.

Day traders rely on this real-time calculation to make informed decisions rooted in the current market conditions. By continually refreshing the VWAP line during the trading day, traders can stay up-to-date with the latest market trends and make adjustments to their trading strategies accordingly.

The formula for VWAP involves multiplying the typical price by the period’s volume and dividing the running total of price-volume by the running total of volume. The typical price is calculated by taking the average of the low price, high price, and closing price for each period. The period’s volume is then used to weight the price of each trade according to the volume of that trade.

By summing up the product of the price and volume for each transaction, the running total of price-volume, also known as cumulative volume, provides a more precise stock’s average price by giving greater emphasis to trades with higher volume. This method helps to provide a clear picture of the trading activity during a given period and allows traders to make better-informed decisions based on the VWAP line.

Real-time calculation of VWAP is essential for day traders to make informed decisions based on current market conditions. The VWAP line is calculated in real-time for day trading. It is determined by taking the average of the high, low, and close prices for a given time period. This average price is then weighted by the total volume traded during that period. This calculation is carried out automatically and dynamically throughout the trading day.

Real-time VWAP calculations can be performed using a variety of tools and software, such as the VWAP Tool, TradingView, and the Rancho Dinero Range VWAP Drawing Tool. By continuously monitoring the VWAP line, traders can stay up-to-date with the market’s relative value and adjust their trading strategies to capitalize on potential opportunities.

VWAP signals help traders identify overbought and oversold levels, as well as support and resistance levels in the market. Examining the position of the price relative to the VWAP line allows traders to assess if the market is bearish or bullish. When the price is above the VWAP line, it implies a higher price in comparison to its average, indicating an uptrend. Conversely, when the price is below the VWAP line, it implies a lower price in comparison to its average, indicating a downtrend.

Comprehending these signals enables traders to make informed decisions regarding when to initiate and terminate trades, as well as pinpointing potential market reversals. Combining VWAP with other technical indicators, such as pivot points and trend lines, can further enhance trading opportunities and improve decision-making.

Identifying Overbought and Oversold Levels

If the stock price is above the VWAP line, it is considered 

, while if it is below the line, it is considered oversold. Overbought conditions occur when the price of a security is assumed to be higher than its actual value and is likely to experience corrective downward pressure in the foreseeable future.

Traders can use the VWAP indicator to recognize these overbought levels and make trading decisions accordingly. Similarly, oversold conditions occur when the price of a security is lower than its actual value, presenting a potential buying opportunity for traders. By monitoring these levels, traders can make better-informed decisions and capitalize on market opportunities.

VWAP can act as a support or resistance level, depending on the price movement relative to the indicator. When the price reacts to the VWAP line from below, it can be identified as a support level, and when it reacts from above, it can be identified as a resistance level. Additionally, traders can analyze the slope of the VWAP line to evaluate the strength of the trend.

When a primary trend line is breached, it could signify a reversal in the trend. By using VWAP in conjunction with trend lines, traders can identify potential support and resistance levels in the market and make more informed trading decisions.

Trading with VWAP involves strategies such as the retracement trade and VWAP bands and channels, which assist traders in identifying potential points of entry and exit. The retracement trade involves waiting for price retracements towards the VWAP and then entering trades in the direction of the overall trend. The VWAP bands and channels strategy involves utilizing the volume-weighted average price (VWAP) indicator to identify potential support and resistance levels.

By incorporating these strategies into their trading arsenal, traders can capitalize on market opportunities and enhance their decision-making process. Combining these strategies with other technical indicators can further increase trading accuracy and help traders make well-informed decisions.

By being patient and observing price action, traders can identify potential retracement trade opportunities and make more informed trading decisions. Combining this strategy with other technical indicators, such as pivot points and trend lines, can further enhance trading opportunities and improve decision-making.

VWAP bands and channels involve using the upper and lower bands of the VWAP line to identify buy signals when the price rebounds back inside the channel. When the price is above the upper band, it indicates an overbought condition, while when the price is below the lower band, it implies an oversold condition.

By monitoring these bands and channels, traders can identify potential trading opportunities and make better-informed decisions about when to enter and exit trades. Combining the VWAP bands and channels strategy with other technical indicators, such as pivot points and trend lines, can further enhance trading accuracy and help traders make well-informed decisions.

Combining VWAP with Other Technical Indicators

The integration of VWAP with other technical indicators like pivot points and trend lines can augment trading opportunities and refine decision-making processes. Pivot points can signal potential reversal points in the market, especially when combined with VWAP for long entries. Trend lines can help determine trend direction over multiple days and identify areas where the price may reverse, particularly when the price is below the VWAP indicator.

By utilizing multiple technical indicators in conjunction with the VWAP, traders can gain a more comprehensive understanding of market dynamics and make more informed decisions about when to enter and exit trades. This holistic approach to trading can help traders capitalize on market opportunities and minimize potential losses.

Pivot points can signal potential reversal points in the market, particularly when combined with VWAP for long entries. These technical indicators ascertain support and resistance levels through price movement, while VWAP provides an insight into the average price paid for a security based on both price and volume.

By utilizing both indicators simultaneously, traders can acquire a more thorough comprehension of market dynamics and make more informed trading decisions. Combining VWAP with pivot points can enhance trading opportunities and help traders identify potential reversal points in the market, thereby improving their overall trading performance.

Trend lines help determine the upward or downward trend direction over multiple days and identify areas where price may reverse, particularly when the price is below the VWAP indicator. By connecting two or more price points on a chart, trend lines can indicate the direction of the price trend and provide support and resistance levels.

When used in conjunction with the VWAP indicator, trend lines can provide valuable insights into the strength of the trend and potential reversal points. By combining these two technical indicators, traders can make better-informed decisions about when to enter and exit trades, as well as identify potential market reversals.

 and adaptability to market conditions, facilitating capitalization on opportunities and minimizing losses. Here are some strategies to consider:

Adapting to market conditions entails awareness of factors like weak volume or market noise that could impact the reliability of VWAP signals. Monitoring these factors and adapting trading strategies accordingly can help traders make the most informed decisions possible, leading to enhanced success in VWAP trading.

Managing risk involves setting stop-loss orders and position sizing to protect capital and maximize potential gains. Stop-loss orders enable traders to establish a definite price at which their position will be automatically closed, thereby preventing any further losses beyond a predetermined point. By using stop-loss orders, traders can safeguard their investments and manage risk proficiently.

Position sizing involves determining the appropriate size of a trade based on the average price, volume, and total capital allocated to the trade. By calculating the VWAP and establishing 

 parameters based on the level of risk one is willing to accept, traders can effectively manage their trading positions and minimize potential losses.

Adapting to market conditions entails awareness of factors like weak volume or market noise that could impact the reliability of VWAP signals. By monitoring these factors and adjusting their trading strategies accordingly, traders can ensure that they are making the most informed decisions possible.

Traders can also adjust to fluctuating market conditions by utilizing the VWAP indicator as an instrument to assess trade quality and guarantee they are obtaining the most advantageous price. By prioritizing capital preservation, traders can ensure financial security and diminish emotional distress in their trading activities.

The VWAP indicator is a powerful tool that combines price and volume data to help traders make informed trading decisions. By understanding the components, calculations, and signals of the VWAP indicator, traders can enhance their trading strategies and capitalize on market opportunities. Combining VWAP with other technical indicators, such as pivot points and trend lines, can further improve decision-making and lead to greater success in trading. With proper risk management and adaptation to market conditions, traders can harness the full potential of the VWAP indicator and achieve their trading goals.

VWAP is used by traders as a trend confirmation tool to build trading rules around. For instance, they may consider stocks with prices below VWAP as undervalued and those with prices above it, overvalued. A stock trading above the VWAP as the line rises indicates an uptrend while prices below VWAP moving above it may indicate a good time to go long on the stock.

VWAP is a widely used indicator for day trading and is generally considered reliable due to its calculation of the average price weighted by volume. However, it is important to note that it is a lagging indicator and may not accurately reflect sudden price changes. Additionally, it may be less reliable during pre-market or after-hours trading when volume is low.

Using MACD and VWAP in trading involves setting up three indicators - the MACD, VWAP and a volume chart - and waiting for four confirmations before entering a trade. Specifically, this involves price closing above the VWAP and at the same time the MACD line crossing the signal line from below.

VWAP can be gamed and does not account for delayed costs and missed trade opportunities. Additionally, it is a lagging indicator that only reflects past data and cannot predict future price movements. Furthermore, attempting to calculate an average VWAP over multiple days can lead to inaccuracies and distortions.

The VWAP indicator displays the volume-weighted average market price of a stock and can be used to compare current prices with the benchmark. It helps investors decide when to enter or exit the market by providing insight into the daily price fluctuations and how it relates to total trade volume.

What is VWAP Indicator? How to Use It?

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