About RatoTheRatCoin, the dog fund really has a firm grip on the psychology of retail investors
Today, little mouse RATO had a slight rebound, and I've already seen some brothers getting a bit too excited. In fact, this is a common trick used by the dog fund; after whipping you a lot, they occasionally apply some medicine. It's not that the dog fund is so good, but rather so you can endure longer the next time they whip you
Let's talk about reality, without any dreams
Little mouse RATO has been in a continuous decline for more than a week since its peak. Those who are trapped are surely still waiting for the expectations of a new book, and the dog fund keeps using this expectation to sell off, releasing a little each day, seemingly harmless, but in reality, it is a slow suicide, with an overall decline of 88%
During this decline, a lot of capital will be washed out; the larger the funds, the easier they are to exit first. Instead of expecting a new book, it’s better to expect the next round that the dog fund values
Although RATO has been declining all the way, if you carefully examine the data, you will find that the number of holding addresses has not decreased, but rather has seen a slight increase. The top 100 holders have also dropped to 50%, indicating that the basic consensus of the token has already formed. The price decline is just the first step of the big holders' rotation, and during this period, there are continuously retail investors entering the market
For the next round of market makers, having dispersed chips and an increase in holding addresses is the best favorable condition. Any individual fund can only fully utilize its advantages when competing against smaller entities
Since those trapped are all retail investors, the risk for the dog fund to enter has decreased. Once they start to pump, retail investors will enter a mode of faith recharging + self-promotion, reigniting the hot topic and effectively attracting more retail investors into the market, expanding the consensus
Of course, this is just a theoretical analysis. The worst-case scenario is that there is no strong dog fund interested in this token, and only a small portion of speculative funds are competing in the market until it dies.