Today, when I opened my eyes, I was overwhelmed by a coin - FOLKS.
It's not because it skyrocketed, but because it plummeted by 40% while its contract trading volume surged to third place in the entire network, second only to BTC and ETH.
Clearly, the price has dropped significantly, so why are so many people still trading desperately?
Is it an opportunity or a trap?
If you also hold FOLKS or are watching from the sidelines, you must read this article to the end.
A 40% plunge, yet smart money is 'secretly bottoming out'?
Data shows that FOLKS has dropped 40% in the last 24 hours, but its contract trading volume on Binance reached as high as 2.35 billion dollars. What does this indicate? There is significant capital in intense speculation. More critically, on-chain analysts found that among 294 'smart money' accounts, 65% are going long, with an average opening price of 21.88 dollars; only 35% are shorting, with an opening price of 15.64 dollars. This means that most 'smart money' believes: FOLKS has dropped to this point and is close to the bottom, a rebound could come at any time. But will the rebound really come?
Candlestick charts speak: resistance at 39, support at 23, but the 'bottom' might be at 15?
From the 1-hour chart, FOLKS is still in a downtrend overall.
Currently, there are two key resistances above: 39 and 49. Support below, looking at the short-term range of 29-23. If it breaks below, it may very likely test 15 dollars. Interestingly, although the MACD has broken below the zero axis, there are signs of a dead cross turning into a golden cross—this is a signal for a short-term rebound.
Shengyi's view is: but remember: the trend is still down. So, if you want to enter now, look for short opportunities around 39 and 49, take a light position long around 23, but the real strong support is at 15. Why is 15 so important?
Because that is the average cost area for 'smart money' shorts, once touched, it may trigger a significant rebound...
Liquidation data hides danger: longs are worse off than shorts.
Looking at liquidation data, longs liquidated 3.63 million dollars in the last 24 hours, shorts liquidated 3.07 million dollars.
More longs have been liquidated, indicating that most retail investors are still 'catching the bottom', but they have all been trapped.
This instead confirms a cruel reality: in a downtrend, blindly catching the bottom is just giving away money.
So what should we do?
Shengyi gives you a mantra: 'Do not go against the trend, do not be greedy during rebounds, short at resistance, and test long at support.'
Specifically for FOLKS:
If it rebounds to around 39, short decisively, set a stop loss at 42, target at 29.
If it falls to around 23, take a light position long, set a stop loss at 21, target at 29.
If it breaks below 23, don’t rush to catch the bottom, wait for signals around 15.
Why 15?
Because that place is not only support but also the cost line for 'smart money' shorts. Once touched, there will be significant volatility...
Data, candlestick charts, and sentiment are all here. But the market is always full of surprises. Will FOLKS suddenly surge today? Will it break below 15?
Shengyi will remind in real-time in the village. If you don’t want to miss the next opportunity and don’t want to be trapped again—find Shengyi's Binance chatroom: 【1143032750】, let’s look at the market with a professional perspective and trade with a calm mindset. Not only providing conclusions but also methods.
#山寨币热点 $FOLKS
