Cryptocurrency trader James Wynn warns against rushing into trades when new Token launches have not completely cooled down.

According to Wynn, new Token launches often end in extreme directions and tend to hit the bottom after a strong Pump, so players need to be patient to avoid risks.

MAIN CONTENT

  • James Wynn believes that one should not rush to short during new Token launches.

  • The safe time to enter is when the Pump has completely stalled and hit the bottom.

  • This experience helps limit risks when the market is highly volatile due to new Tokens.

Who is James Wynn and what is his perspective on new Token launches?

James Wynn is known as an experienced cryptocurrency trader in the international market, with a reputable voice in the community. He believes that new Token launches often create significant volatility and tend to end with a sharp decline, posing risks if one participates too early.

Patience is key when facing new Token launches; you should wait for the Pump to completely end before entering to avoid unnecessary losses.

James Wynn, cryptocurrency trader, 19/07/2023

Why wait for the Pump to end before entering the cryptocurrency market?

Analysis of the cryptocurrency market shows that strong Pumps are often accompanied by a massive participation of whales and FOMO investors, leading to unsustainable price increases. When the Pump ends, the market will recover to the bottom, creating opportunities to buy at better prices, minimizing the risk of losses.

Pumps followed by Dumps are the reason inexperienced investors often incur heavy losses, so waiting is a smarter strategy.

Blockchain market analyst, 2023

How to identify the bottom after a Pump in new Token launches?

Through on-chain analysis and technical indicators such as trading volume, RSI, and MACD, traders can assess the sustainability of the Pump. Once these indicators show a decline in liquidity and increased selling pressure, the bottom is near, and it may be safer to enter.

Real-life example of participating after the Pump ends

In 2022, several Tokens released on Mainnet Layer 1 underwent an initial Pump with prices doubling, then dropping nearly 70% within a month. Patient investors who waited for the bottom and bought at lower prices ultimately reaped stable profits as the market corrected.

Frequently Asked Questions

Why do new Token launches often lead to significant price volatility?

This is a new platform attracting many individual investors and whales, creating strong but unstable Pumps due to limited liquidity and market FOMO.

How can new traders avoid risks during Token launches?

Avoid entering immediately when a Pump occurs; monitor on-chain indicators and wait for trends to stabilize before participating, helping to minimize losses due to volatility.

Does James Wynn have suggestions for effective trading during new Token launches?

He emphasizes the importance of patience and waiting for the market to hit the bottom before entering, avoiding high prices during the Pump to ensure capital safety.

Which indicators help identify an impending end to a Pump?

RSI being excessively high, trading volume doubling the average, and MACD giving divergence signals are all warning signs that the Pump may be ending.

Should I short immediately when a new Pump starts?

No, because prices may continue to rise sharply; shorting too early can be risky and lead to losses. It is better to wait for clear reversal signals.

Source: https://tintucbitcoin.com/james-wynn-khuyen-cho-tien-ao-giam/

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