First, let us understand the concept of liquidity in K-line.

Taker liquidity can be simply understood as when you sell altcoins, the market needs to have USDT to take your sale.

Maker liquidity can be simply understood as, when you buy altcoins, the market needs to have corresponding altcoins for you to buy.

1. When the coin price falls below the starting point of this round of rise, it means that above the starting point, no matter where you buy, you will be trapped.

Here, it can be understood that if the price rebounds to every position where the volume falls, there will be more or less selling orders, which will increase the cost of Taker liquidity.

It can be seen here that as long as the rebound reaches the starting point (large volume decline), there will be long orders for long positions to take profit. Air forces who are short in the range will increase their positions and short here.

Then there will be very dense liquidity here. To clear out the short positions, the current price needs to deviate from the increase by at least 15% (accurately 10 times the contract) to clear out the short positions. This can cause the price of the currency to rebound further. This is also what Qiu Rong has been talking about, the liquidity "supply zone"

This is a moment when the odds of winning are extremely low but the odds are extremely high. In options, this is chasing Gamma. It is a very lottery-like way to play.

2. The first point should have been explained, the rebound after the decline, here we are talking about the continued decline.

When the price of a currency hits a new low, or a new low for the year, it means that there is no liquidity to take over below (you can think of it the other way around. When it rebounds, there will be selling pressure at the starting point or the point where it is trapped, which will prevent it from rising).

And selling coins often does not lead to tightening.

Therefore, when there is no liquidity or liquidity drops suddenly, the price of the currency will fall sharply. Take#ARBas an example. After falling below the starting point on September 12, 23, there was a huge drop in volume, and the subsequent rebound could not maintain the starting point (0.75U)

Then, in the subsequent rebound, it will be difficult to reach the position of large-volume decline.

The performance on the K-line is one step at a time. Every time the rebound approaches the starting point, it will immediately stop rising (stop rising)

With the expectation of clear large-scale unlocking in the future, selling pressure will continue to exist, and Taker liquidity will not be amplified at this time. Therefore, before liquidity overflows, the trend of this type of token will be extremely negative

Even if there is a rebound, these tokens will face more selling pressure during the rebound than those tokens with low unlocking volume/full circulation.

At this point, all coin holders will be backstabbed.

What you expect is that when liquidity returns, the project owner will show mercy and give you a chance to pull the price up.

This expectation may last from half a year to several years.

Adhering to the methodology of "no expectations, no disappointment".

I think these tokens should not be held in any form.

Even if there is a rebound, there are definitely better targets than this type of token.

In the future, new vc coins will also be wary of this. As long as the vesting schedule has further changes, the market will follow and users will follow.

Until these tokens make new statements and MM changes its market-making strategy, I don’t see any hope at all.

Liquidity is always the first answer of the market