Yesterday, PERP also nearly doubled in price. In recent days, many small-cap currencies have seen very good growth.
The rise of these currencies is not inexplicable and can be judged in advance from the market.
As long as you have the ability to judge the bottom, there are many opportunities for short-term and medium-term trading.
All of these require work and planning in advance, rather than waiting for the price to rise before chasing after it.
Selecting a target is very difficult and requires a lot of time and effort.
PERP, the full name of Perpetual Protocol, is a decentralized perpetual contract protocol that enables transactions of every asset through a virtual automated market maker (vAMM).
Simply put, it is a decentralized contract exchange.
PERP is built on Ethereum Layer2.
USDC is used as collateral and all settlements are made in USDC.
The uniqueness of PERP lies in its adoption of the vAMM model.
After understanding the basic information, you need to use technology to determine whether the market has shown signs of bottoming out.
Now that the market has gone up, we should pay attention to the peak signal.
Judging from the market, after a huge surge in volume, PERP has shown signs of bullish weakness, so caution is needed.
The basis is as follows:
1. Three consecutive four-hour lines have long upper shadows, indicating that there is pressure from above. When upper shadows appear after a sufficient rise, you need to be cautious.
2. The amplitude of breaking the previous high is getting smaller and smaller, indicating that the bullish force has begun to weaken.
3. The price is rising, but the volume is decreasing, forming a top divergence between volume and price.
4. The previous high was not broken in the last four hours, and the volume is getting smaller and smaller.
The above clues indicate that the bullish force has been released and is beginning to weaken, and the probability of a subsequent pullback is relatively high.
This rapid rise was the result of the power accumulated in the previous two months, but the explosion was too fast, and the price doubled in just one day.
Such an explosive rise will immediately use up the accumulated power of the bulls, which is not a healthy upward trend.
Above the daily line is the pressure level range formed by the top of the wave in February and March. The pressure is very high, and it is very difficult to go up.
Combined with the overall market analysis, risks have already appeared, and there is a high probability of a subsequent correction. Those who have spot goods need to be cautious.
When the top appears, it is time to sell. You must not take profits or get trapped just because you want to make a few more points.
