Family! Just opened the market software, are you scared out of your wits by HMSTR's sudden plunge? Those who bought the dip are crying in the corner, while the ones who chased the highs are staring at the screen questioning their lives, and some are frantically asking in the group, 'Is there bad news? Should we cut our losses?'
First, let me reassure my old and new fans, this plunge is not some sudden black swan event, it's just a routine operation for sentiment coins: as crazy as the rise was, the drop is just as exhilarating, and I had already predicted this!
As a veteran who has been watching the crypto sentiment coins for many years, today I'm going to share some real insights with you guys, breaking down this HMSTR situation so that next time you encounter a coin like this, you'll know how to avoid pitfalls and how to handle it.
First, we need to understand: what really makes HMSTR popular? It’s not about hardcore technology or practical applications; it’s purely driven by “traffic narrative,” relying on the heat generated within the community and the scale of users built up by waves of retail investors entering the market, plus the airdrop expectations that hang above our heads and haven’t landed yet, gradually pushing up the valuation.
The key logic behind such coins is the “new funds.” It’s like inflating a balloon; as long as there is new air coming in, it can keep expanding; once no one is blowing air, or even starts to let air out, it’s only a matter of time before the balloon pops. The recent drop of HMSTR actually had signals early on; I had already warned a few old comrades around me to be cautious:
First, there was no volume during the lift. The previous surge looked fierce, but in reality, the trading volume was sparse, which belongs to “fake growth” without real monetary support, like walking on cotton—ready to fall at any moment; Second, the high-level turnover completely failed. The initial intention was to complete the chip handover at a high level, letting new retail investors take over, but no one was willing to be the “sucker.” If they can't hold on, they can only dump and leave; Third, the early chips and the expected selling pressure from airdrops were concentrated and released. Those who got early low-priced chips and were waiting for airdrop realization saw the momentum shift and crowded to sell, causing the selling pressure to explode.
Many people got trapped this time not because they misjudged the direction, but because they made a fatal error: treating emotional coins as if they were value coins. Let me tell you a harsh truth: the commonality of emotional coins can be summed up in one sentence: they soar like a rocket when they rise, and drop like bungee jumping when they fall, and they don’t even give you a safety rope! Treating it as a long-term holding value is as absurd as treating instant noodles as a gourmet meal.
Of course, it’s not to say that a drop will definitely lead to zero; we can’t make absolute statements. The characteristic of emotional coins is their large volatility. Once this wave of panic sentiment clears, if the trading volume stabilizes and the selling pressure significantly weakens, there’s a high probability of a technical rebound in the short term. But it’s crucial to emphasize: this kind of rebound should only be treated as a short-term trading opportunity, quickly entering and exiting to earn some money from the volatility. Never treat it as a “reversal,” and don’t hold onto it long-term with “faith,” or it could turn from “breaking even” to “being deep in the red.”
So how should we respond next? For friends in different situations, I will clarify based on the circumstances, with practical advice:
For those already in the game: Don’t fantasize about “recovering your investment” and just selling. Focus on the market structure; see if the trading volume stabilizes and if there are signs of a bottoming out. If it’s still crashing with increasing volume, make a decisive stop-loss; as long as you have green hills, you won’t fear having no firewood.
For those wanting to enter the market and pick up bargains: Listen to me, wait a moment! The panic sentiment hasn’t dissipated yet, entering the market to bottom fish at this time is no different from walking barefoot on glass—it’s purely a gamble with your life. Wait until the selling pressure completely eases and the market stabilizes before considering whether to try a small position;
For those heavily invested and leveraged: I have to say something serious, if you dare to heavily invest and leverage in such emotional coins, you are essentially gambling. Don’t think about recovering losses now; first, find a way to control the risk. If you can reduce your position, do so, and don’t let a wave of emotion wipe out your principal.
Finally, let me emphasize one more point based on my years of bitter experience: the profits from emotional coins come from volatility, not from time. Don’t think you can make money by holding long-term based on faith; you need to be sensitive to market signals and control your emotions, quickly entering and exiting, and taking profits when you can.
My old followers know that I never sugarcoat things; I only talk about solid logic and give practical suggestions. I will continue to closely monitor the market signals of these emotional coins. Whether it’s a rebound opportunity or a risk warning, I will synchronize in the comment section and fan group at the first moment.
If you find today's insights useful, don't forget to like + follow@帝王说币 #ETH走势分析 $BTC
