Daily Signal Strength Index (DSSI)

DSSI Guide

The Daily Signal Strength Index (DSSI) is a composite indicator that reflects the level of accumulation of a token based on the trading activity and balance fluctuations of 3 main market participants.

The index is scored on a scale from 0 to 100, providing users with a quick and accurate overview of the asset's accumulation status.

1. 3 Core Components of DSSI

The DSSI score is calculated by combining the behavior of 3 key market groups:

A. TOP HOLDERS ACCUMULATION (Max 40 points)

Measures the concentration and accumulation behavior of the largest wallets on the network (Whales):

Whale Wallet Count: The number of large wallets participating.
Holding Ratio: The % of total supply controlled by these top wallets.
Balance Changes: The positive or negative balance trends of top wallets in the latest timeframe.

B. STRATEGIC CAPITAL (Max 40 points)

Measures the accumulation/distribution activity of venture funds and professional traders with historically high win-rates (Smart Money):

Inflow/Outflow: The movement of funds in and out of smart money addresses.
Buy Frequency: How active they are in acquiring the token.
Net Cumulative Volume: The net volume of tokens purchased and held by this group.

C. PERPETUAL (Max 20 points)

Measures the trend and strength of accumulation in the derivatives market (data represented from Hyperliquid):

Hyperliquid Inflow/Outflow.
Long/Short Ratio: The positioning of derivatives traders.
Open Interest & Funding Rate: Open contracts and funding fees to evaluate the momentum of the trend.

2. DSSI Score Zones

Based on the total score, DSSI is divided into 4 main zones to guide user decision-making:

0 – 44: Weak Accumulation -> Faint accumulation flow, less attractive trend.
45 – 69: Moderate Accumulation -> Buying activity is starting to appear, good to add to your watchlist.
70 – 84: Strong Accumulation (Healthy) -> Clear accumulation flow from both whales and smart money. This is the optimal zone to look for entry opportunities.
85 – 100: Overheated -> Accumulation has peaked, risk of technical correction is high, avoid FOMO.

3. How to Use Effectively

Filter Potential Tokens: Prioritize tracking tokens with a DSSI score $\ge 60$ (Healthy zone) to detect early projects being heavily accumulated.
Analyze Components: When you see a sudden score spike, check the details of the 3 components (Top Holders, Strategic Capital, Perpetual) to understand what is driving the increase.
Track the Trend: Observe the 7-day DSSI trend chart to confirm if the buying pressure is increasing or fading away.
Combine Metrics: Combine DSSI with other indicators like Realized Price or Net Order Flow for the highest accuracy.

[!IMPORTANT] Important Notes:

DSSI only reflects the accumulation status of the asset, not a guarantee that the price will immediately pump.

Always Do Your Own Research (DYOR) before making investment decisions.

Data is updated daily at 00:00 UTC.