Speculate on the trends and key price levels of the many KOLs and small investors in the coin $WCT
1) Money can make the devil push the mill! The project team of WalletConnect launched a reward activity for the WCT coin, with rewards exceeding 300,000 USD. Retail investors and KOLs can participate in this reward activity, so Binance Square is flooded with promotional materials about WCT and the WalletConnect project, including my own articles about WalletConnect;
2) The WalletConnect wallet is indeed quite impressive, using innovative mechanisms to solve the 'three governance dilemmas'—the balancing act of decentralization, efficiency, and incentive compatibility. The ecological advantages are obvious, with a user base of 45 million active wallets and a cumulative connection of 292 million times (the first in Web3 connection protocols); adoption rate: integrated with over 600 wallets + 40,000 DApps, covering all scenarios in DeFi/NFT/blockchain games.
3) However, the WCT coin also has some hidden risks and historical flaws:
😭😭 First, the coin price plummeted from a high of 1.39 to around 0.28, a drop of up to 80%, which is clearly a sign of the project team or market makers quickly offloading their assets. It flows down three thousand feet, suspecting the main force is unloading. Will retail investors fall for it a second time?
🥶🥶 Secondly, a massive amount of WCT will be unlocked and released into the market in August. Now the project team has launched a reward activity for the period from June to September. Is it using KOLs and retail investors to promote WCT to a high point, taking the opportunity to offload in batches in mid to late August, achieving a 'four taels to move a thousand pounds' effect? There is indeed this possibility, and retail investors must be cautious.
4) Successful traders thrive by going with the trend. So, can we also take advantage of the hype from the WCT project team while managing risk, and try our hand at trading coins? The answer is yes. If we build a position in WCT now, the risk is relatively low, and the risk-reward ratio is quite high. If the coin price really rises later, the target price is at the Fibonacci retracement levels of 0.236 and 0.382, which are around 0.55 USD and 0.7 USD. Don't be greedy, don't have high expectations, and you can gradually take profits at these two key levels. Leave the remaining profit margin for the project team to ponder.
