In the trading behavior of small market capitalization cryptocurrencies, we can easily observe some interesting phenomena. These types of assets often exhibit significant price volatility, and investors tend to adopt small position strategies to control risk.
In the market, there are often situations where prices rapidly surge and then sharply retreat. Prices may rise by around 20% in a short period, only to quickly return to their original point. This 'pin bar' type of movement has limited impact on most traders, as it neither brings significant profits nor causes major losses.
However, this operating model raises a thought-provoking question: what exactly are the dominant forces pursuing behind such erratic price fluctuations? Even more perplexing is the fact that, despite the dramatic price volatility, there has been no significant increase in trading volume.
This situation inevitably raises doubts about whether the so-called 'whales' truly possess effective trading abilities. Can the strategies they employ actually yield real profits? On the surface, this method of operation seems difficult to achieve sustained and stable profits.
For investors, it is essential to maintain a clear mind when faced with small market capitalization encryption currencies, to analyze market trends rationally, and to cautiously assess risks and returns. At the same time, attention should also be paid to the development prospects and practical application value of the project itself, rather than being overly concerned with short-term price fluctuations.
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In the trading behavior of small market capitalization cryptocurrencies, we can easily observe some interesting phenomena. These types of assets often exhibit significant price volatility, and investors tend to adopt small position strategies to control risk.
In the market, there are often situations where prices rapidly surge and then sharply retreat. Prices may rise by around 20% in a short period, only to quickly return to their original point. This 'pin bar' type of movement has limited impact on most traders, as it neither brings significant profits nor causes major losses.
However, this operating model raises a thought-provoking question: what exactly are the dominant forces pursuing behind such erratic price fluctuations? Even more perplexing is the fact that, despite the dramatic price volatility, there has been no significant increase in trading volume.
This situation inevitably raises doubts about whether the so-called 'whales' truly possess effective trading abilities. Can the strategies they employ actually yield real profits? On the surface, this method of operation seems difficult to achieve sustained and stable profits.
For investors, it is essential to maintain a clear mind when faced with small market capitalization encryption currencies, to analyze market trends rationally, and to cautiously assess risks and returns. At the same time, attention should also be paid to the development prospects and practical application value of the project itself, rather than being overly concerned with short-term price fluctuations.