The Binance effect has been validated again. FOLKS will be launched simultaneously on Binance Alpha Innovation Zone spot and perpetual contract trading on November 6. This dual listing provides liquidity support from the world's largest exchange for the token. Historical data shows that new coins typically experience a frenzy of price increases for 3 to 7 days after landing on Binance, with an average increase of between 80% to 200%.

From the chart's technical shape, such drastic price increases come with extremely high risks. The RSI indicator has already been severely overbought, and the MACD momentum bars have reached historical extremes. The trading volume has exceeded more than 50 times the usual level. These are all classic signals of a short-term peak. Smart investors typically choose to take profits at such times, while retail investors who chase high prices may become bag holders. Numerous historical cases have proven that cryptocurrencies with a single-day increase of over 100% usually retract 30% to 50% within the following week.

In addition to FOLKS, the market has also seen several high-gain cryptocurrencies: CORE up 32.2% to $0.1575, IRYS up 23.8% to $0.03397, AERGO up 23.8% to $0.06647, TAG up 19.5%, LIGHT up 20.4%. This multiple blossoming pattern indicates that market funds are flowing from mainstream coins to small-cap targets in search of higher elasticity and short-term profit opportunities.

The rotation of small-cap cryptocurrencies usually occurs in the later stages of a bull market when large-cap coins like BTC and ETH slow down. Speculative funds begin to look for new targets for speculation. These small coins often have a smaller circulation and can easily be controlled by a few large holders, creating a false impression of rapid price increases to attract retail investors. Once the manipulators offload their holdings, prices will collapse swiftly. Investors must remain highly vigilant regarding such market conditions.

From a trading strategy perspective, participating in small-cap surging cryptocurrencies requires strict risk control discipline. It is recommended that positions do not exceed 5% of total assets, and a stop-loss line of 20% to 30% should be set. Once triggered, exit immediately. Do not fantasize about bottom fishing or holding on for dear life. Additionally, avoid chasing prices after they have already doubled; it is better to miss out than to take risks. True experts often position themselves ahead of the surge rather than impulsively buying when news is trending.

The perpetual contract market provides FOLKS with short-selling tools. Exchanges like Bybit, Bitget, and Aster have opened contract trading, which means that investors who are bearish on the market can profit from short positions. However, it is important to note that short selling in extreme bullish markets carries significant risks as the funding rates may become severely negative, resulting in soaring holding costs. A reasonable approach is to wait for clear top signals to appear before entering short positions.