$FOLKS
In the attached images, it can be clearly observed the evolution of the distribution of the supply of this token across its various chains. The most relevant data is that, in practically all of them, the available supply is already almost entirely absorbed by a small number of addresses, which directly explains the recent bullish movement (pump).
When the market enters a phase where most of the liquid supply has been consumed, the price usually reacts upwards due to simple scarcity pressure. However, this type of structure has an almost inevitable consequence: the risk of a massive sell-off increases significantly. As the supply concentrates, price control shifts to very few participants.
Distribution indicators show that:
The Top 100 wallets control an extremely high percentage of the supply, in some cases close to the total available.
The Distribution Score, according to on-chain analysis scales, is in ranges that indicate high concentration, which historically implies greater volatility and lower price stability.
In several chains, one or two wallets dominate more than 50% of the supply, which raises the systemic risk of the asset.
This context does not invalidate the bullish movement that has already occurred, but it does radically change the risk profile for new entries. Initiating aggressive purchases at highs, when the supply is so concentrated, exposes the trader to abrupt corrections if the whales decide to take profits.
In scenarios like this, the market tends to alternate between explosive movements and deep retracements. Prudence lies in understanding that the pump is already explained by the absorption of the supply, and that the next probable phase is not accumulation, but distribution.
Risk management, additional confirmations, and appropriate position sizing are key at this point in the cycle.
The 4 remaining chains show the same pattern.