The carnival of small-cap tokens: the logic behind the rise of RARE

Recently, the carnival of small-cap tokens led by RARE has attracted attention, and many unknown small currencies have followed suit. In-depth analysis of recent abnormal tokens shows that their trends are surprisingly similar: small-cap, single spot or contract on Binance, huge daily transactions, and continuous large positive lines. At first glance, it seems to be a harbinger of sector rotation, but in fact, it is difficult to find a pattern. It is more like a chain effect of the collective outbreak of low-cap monster coins in a specific sector.

This round of carnival is obviously driven by emotions. For example, the previous example of the chain game sector has a trend of overall rise, but there are few real leaders. Individual currencies such as $voxel stand out and drive sector sentiment, but it is difficult to hide the fact that the overall momentum is insufficient. Traditional analysis tools such as K-line patterns, news and price fluctuations have limited effectiveness in such special market conditions. They are more extreme manifestations of market sentiment.

Looking back at history, similar market conditions are not uncommon. The New Year's Day trb frenzy, the market riot driven by a certain monster coin in May, and even the early stage of people's takeoff all follow the logic of "one coin leads the whole sector". Super monster coins attract attention, funds flock in, and small coins resonate upward. The essence lies in the dual drive of capital flow and market sentiment.

For such opportunities, the strategy is to follow the leader and observe the movement of funds. After the first dragon appears, it is more practical to focus on the second and third dragons that follow the rise in volume. Investors should focus on small-cap tokens on Binance with abundant spot and scarce contracts. They may become potential stocks for the next round of carnival.

At present, mainstream coins such as BTC, ETH, SOL and potential projects such as SATS, RARE, and pepe are in the stage of accumulation. I have been conducting long-term research and am ready to wait for an opportunity to layout. If you prefer the spot market and seek stable returns, welcome to follow me. I will share market insights and potential currencies for free. At the same time, some potential coins have been laid out, and the expected profit space next year can reach 3-5 times. Let us look forward to the next round of feast in the market together!

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