Trading Strategies for FOLKS/USDT

Price: ~$9.50–$11.00 USDT (volatile; down ~40–50% in last 24h from highs around $17–$26, and ~80% from ATH $49 on Dec 14).

Cause of Drop: Profit-taking post-pump, airdrop claims/unlocks starting (linear vesting from Dec 16), incentive dilution fears (1M FOLKS rewards announced), and leveraged liquidations ($2.3M in 24h, mostly longs).

Sentiment on X: Mixed — panic selling ("dump," "rug" calls) vs. dip-buying ("fundamentals strong," staking calls).

Fundamentals: Cross-chain DeFi protocol with growing TVL (e.g., $10M+ on Monad), upcoming xChain V2 (H1 2026), mobile app, high yields (~30–37% APY in some pools). Circulating ~12M/50M total supply (low float contributes to volatility).

Risk Profile: Extremely high volatility. New token with perps leverage (up to 50x on Binance) amplifies moves. Not for weak hands.

1. Short-Term Scalping/Trading Strategy (High Risk, Active Monitoring)

Bearish Bias (Current Momentum): Price in steep downtrend, breaking supports. Volume spikes on sells.

Entry: Short perps if price rejects ~$11–$12 resistance (recent highs).

Targets: $8.50, $7.00 (prior lows), extend to $6 if cascade continues.

Stop-Loss: Above $12.50 (invalidates bearish breakdown).

Leverage: Low (5–10x) to avoid liquidation in bounces.

Signals to Watch: Funding rate (if positive/high, favors shorts), more long liquidations.

Bounce Play (Counter-Trend): Oversold potential after 50% drop.

Entry: Long if holds above $9 and shows green volume/divergence.

Targets: $11, $13 (quick 20–40% scalp).

Stop-Loss: Below $8.50.

Rationale: Capitulation often leads to relief rallies in new tokens.