Reallocation index

« Index

Reallocation Index

Technical Indicators • Price Action • Chart Signals

capital movement scoring across cycle phases

Reallocation Index is a composite metric that tracks the pace, direction, and volume of capital shifting between asset classes, ecosystems, and risk tiers within a market cycle. Unlike simple price charts that show where money sits, the Reallocation Index reveals where money is moving — measuring the velocity and magnitude of portfolio repositioning across sectors. A rising index signals active rotation (capital in motion), while a flat or declining index indicates conviction lock-in or stagnation. For cycle-aware investors, this index serves as an early warning system: when reallocation accelerates into speculative tiers, the cycle is heating up. When it reverses toward defensive assets, the smart money is already leaving.

Use Case: The Reallocation Index spikes as stablecoin reserves on exchanges drop sharply while TVL surges across FLR and HBAR DeFi protocols. Simultaneously, on-chain data shows whale wallets moving from BTC into mid-cap alts. A cycle-aware trader reads this as Phase 3 rotation confirmation, enters ecosystem positions through SparkDEX for dividend exposure, and pre-sets a rotation trigger into $KAU once the index reverses toward RWAs.

Key Concepts:

• Capital Rotation — The macro flow of funds between asset classes during cycle transitions
• Capital Rotation Map — Visual framework mapping the 6-phase capital movement sequence
• Reallocation Bridges — Infrastructure enabling smooth capital transfers between ecosystems
• Bitcoin Dominance — Market share metric that shifts as capital reallocates from BTC to alts
• Liquidity Flows — Directional movement of liquidity between protocols, chains, and asset types
• Cycle Threshold Timing Map — Framework for identifying when rotation thresholds are reached
• Sentiment-Based Indices — Emotional data feeds that correlate with reallocation velocity
• Dominance Divergence — Gap between BTC dominance trend and altcoin performance signaling rotation
• Altcoin Signals — Indicators confirming capital is flowing into alternative assets
• Speculative Rotation — Late-cycle capital chasing high-risk assets before distribution
• Cycle Exit Positioning — Strategic preparation for rotating out before peak reversal
• Asset Type Diversification — Spreading capital across uncorrelated asset classes to manage reallocation risk

Summary: The Reallocation Index quantifies what most traders only feel — the shifting gravity of capital across a market cycle. It turns rotation from instinct into data, giving cycle-aware investors a measurable edge in timing entries, exits, and preservation moves.

Index Reading	Capital Behavior	Cycle Signal
Low (0-20)	Capital locked in — minimal movement between sectors	Accumulation or deep bear — conviction phase
Rising (20-50)	Early rotation — funds shifting from majors to infrastructure	Cycle ignition — smart money positioning
Elevated (50-75)	Active reallocation — broad sector rotation underway	Mid-cycle expansion — altseason developing
High (75-90)	Rapid capital chasing — speculative tiers absorbing flow	Late cycle — euphoria building, caution warranted
Extreme (90+)	Frantic rotation — capital fleeing into memes and micro caps	Peak proximity — distribution imminent

« Index