In the cryptocurrency market, there is a significant capital rotation effect between mainstream and sub-mainstream coins.
When strong coins enter a correction phase, market capital often quickly flows to other mainstream and sub-mainstream coins, driving their rebound trends. For investors who capture the initiation signals, seizing such opportunities in a timely manner can usually yield a high risk-reward ratio.
It is particularly important to note that some niche altcoins carry a higher investment risk.
If the exchange with the largest holding of a certain altcoin is not one of the leading platforms like Binance, OKX, or Bybit, investors should be cautious of potential data manipulation risks.
Past cases of sudden crashes and instantaneous liquidity depletion in altcoins during overnight trading show that such risky coins often exhibit similar characteristics in futures position distribution. It is advisable for investors to carefully assess and avoid potential traps.
