Crypto prices are chaotic. One minute you're chasing a pump; the next, you're underwater.
That’s why volume matters—and why VWAP (Volume-Weighted Average Price) is a powerful tool for cutting through the noise.
In this post, I’ll show you how to:
- Understand the VWAP Score
- Access it through the DropsTab API
- Use it to spot overheated or undervalued tokens
- Integrate it into alerts, bots, or dashboards
🔍 What is VWAP Score?
VWAP Score tells you how far a token's price has moved from its fair value, based on trading volume.
Formula:
math
VWAP Score = ((Current Price – VWAP) / VWAP) × 100
Interpretation:
• +100 → Extremely Overvalued (likely top)
• +50 to +99 → Overheated
• –50 to –99 → Undervalued
• –100 → Deep Panic (may bounce)
• 0 → Neutral / Fair value
🔌 Accessing VWAP Score with DropsTab API
First, sign up and get your API key here.
Example: Fetch VWAP Score for BONK
const response = await fetch('https://api.dropstab.com/vwapRadar?token=BONK&window=7d', {
headers: {
'Authorization': 'Bearer YOUR_API_KEY'
}
});
const data = await response.json();
console.log(data.score); // Output: e.g., -89.34
You can adjust window to:
• 7d (short-term)
• 1mo (medium-term)
• 3mo (longer trend)
**How to Use VWAP Score in Your App**
1. Contrarian Alerts (panic or hype zones)
if (score <= -70) {
alert("🔥 Possible dip-buy opportunity");
}
if (score >= 80) {
alert("⚠️ Token looks overheated");
}
2. Trend Confirmation (VWAP crossover logic)
If the score crosses from negative to positive over time → potential bullish momentum. Vice versa for bearish.
3. Multi-Timeframe Logic
Compare 7d vs 3mo scores to spot:
• Short-term dips in long-term bullish trends
• Overbought signals in weakening trends
Use Cases
• Trading bots: trigger buy/sell alerts based on extremes
• Portfolio dashboards: surface tokens farthest from fair value
• Alpha scanners: visualize undervalued tokens across markets
Quick Dev Checklist
✅ DropsTab API Key
✅ VWAP endpoint integrated
✅ Custom thresholds set
✅ Optional combo with RSI / Bollinger Bands / On-chain metrics
Example: BONK at –89, Then Bounce
Last week, BONK’s VWAP Score hit –89 (7-day window). That’s deep panic territory. It rebounded +20% in 48 hours.
Another token, PUMP, hit +100 → dumped shortly after.
VWAP Score gave both signals in real-time.
Try It Yourself
• Docs: https://api-docs.dropstab.com
• Dashboard: https://dropstab.com/tab/vwap
• API: /vwapRadar
Let me know in the comments if you build something on top of it — would love to see what you make.