Last night, the cryptocurrency market experienced another wave of turbulence, as the recently关注 MMT (MMT) token underwent a rapid rise followed by a sharp retracement, triggering a large number of contract liquidations, prompting all traders to reflect deeply.
1. Event Review
MMT briefly surpassed approximately US$4.4 in the short term, but then quickly retraced.
During this wave of rise and retracement, the liquidation amount in contracts reached approximately US$1.09 billion within 4 hours.
The overall cryptocurrency market also faced liquidity shocks in the past 24 hours, with over US$1.2 billion being forcibly liquidated.
In addition, MMT has recently been included in the listing plans of multiple exchanges: for example, the Korean exchange will open trading pairs in Korean Won.
Two, why does 'liquidation' occur?
Excessive leverage and improper positions: When the token price fluctuates violently, the risk of leveraged trading increases sharply, and many positions that did not stop-loss in time are directly forced to liquidate by the system.
High volatility + short-term price increases are tempting: MMT has skyrocketed in the short term, attracting a large number of follow-up buyers, but if the price 'can't hold' or quickly retraces, it becomes the target of being 'swept'.
Overall market environment deterioration: Major coins like BTC and ETH are under pressure, with the trend shifting from 'bull' to 'adjustment', and risk appetite decreasing.
Lack of liquidity and misaligned expectations: When many people expect prices to continue rising and use high leverage to go long, but in reality, the market reverses, it can easily trigger a large number of collective stop-losses.
Three, insights for ordinary traders
Remember: Leverage is not a toy. High leverage means high returns accompanied by high risks.
It is strongly recommended to set stop-loss/stop-profit mechanisms and not to let positions 'run bare'.
Extra caution is required when participating in new coins or newly listed tokens: although the project has highlights, liquidity, market maturity, and risk factors may not be fully digested.
Maintain good position management: control the proportion of a single position and do not bet all funds in the same direction.
Stay calm: when the market is 'hot' to the point of explosion, it may also be the eve of a 'storm'. Do not be driven by FOMO (fear of missing out).
Four, follow-up observation points
Pay attention to whether MMT can stabilize at a high level next, whether there is continuous capital inflow or substantial ecological implementation.
Observe whether the overall market has exited the 'adjustment period' or whether there is further downside risk.
Focus on the exchange's adjustments to MMT's contract leverage and changes in risk control mechanisms.
Is my trading strategy suitable for the current 'high risk, high volatility' market environment?
🔔 Disclaimer: This article is only an analysis of market events and does not constitute any investment advice. Entering the market carries risks; observe changes calmly and bear the risks yourself.#MMT
