This morning, the market saw an adjustment, with Ethereum falling from 3800 to 3510, and many Altcoins also dropping 20-30%. If you had previously reduced your positions, this drop would not hurt you. But if you did not reduce your positions, you may get trapped. At this time, it is recommended that you check your holdings, find the support levels of these coins, and try to lower your cost and reduce your losses.
An important reason for this drop is the deleveraging. Recently, many investors have borrowed money through leverage to increase their investment, which has formed a huge risk. When the market experiences extreme volatility, leveraged traders are easily liquidated, causing a large outflow of funds. Although many people have seen the market decline, this is actually an adjustment made by the market to clear the leverage. Once these leverages are cleared, the market will be able to recover and enter a new upward cycle.
There is no particular negative news, it is just emotional fluctuations
This drop does not have clear negative news. In general, it is mainly due to the deleveraging and the fluctuation of market sentiment. The US stock market also fell last night, which affected the market sentiment. In addition, the outflow of Ethereum was once very large, close to 5 million, but the current ETF data has turned to net inflow, indicating that the market's capital inflow situation has become healthier.
In general, this drop is just an emotional fluctuation and the process of deleveraging. After the leverage is cleared, the market will be more relaxed, and more funds will enter the market, driving the market upward.
Deleveraging is to prepare for the subsequent bull market
This market drop is actually to prepare for the future bull market. For the bull market to go higher and healthier, it must go through a process of deleveraging. This bull market is different from the past, the market has not released a large amount of liquidity, and the capital is more cautious. Therefore, in order to drive the market upward, the burden of high leverage must be removed first. After the deleveraging, the market's capital rate will return to normal, and the performance of Altcoins will also gradually improve.
Although Ethereum has not yet broken through its historical high, this means that its accelerated trend has not yet arrived. Most Altcoins are still in the bottom stage. The real start of the bull market is to let the capital enter the market, not for the retail investors to sell. After the flash crash, the market will enter a repair period, and after the repair is completed, the stage of accelerated upward will come.
Which Altcoins are worth paying attention to?
This flash crash actually gave investors who didn't have time to buy the strong coins an opportunity. Here are a few Altcoins that may perform well in the future:
ETH
Ethereum will have an online meeting this month, and new upgrade plans are expected. In addition, ETF has been net inflow for half a month, the upgrade in March next year, and the possible relaxation of policies after Trump takes office in January may drive the rise of ETH.
Reference price: You can buy in batches around 3550-3500, and the target price is set at the new high and 8000.
SOL
Solana is expected to be the first Altcoin to launch an ETF. In January 2025, the Solana ETF application submitted by four institutions will be reviewed. In addition, Solana's ecosystem is also constantly developing.
Reference price: You can buy in batches around 200-205, and the target price is the new high, which may rise to 500 after the ETF is launched.
Doge
The trend of Doge has not ended, and Musk will also officially take office as the Doge minister in January, which may drive the rise of Doge again. Although Doge's market value is relatively large, it still has room to double.
Reference price: You can buy a portion at 0.4, and the remaining can be entered in batches around 0.36, remember to control the position.
Pepe
Although Pepe has experienced a lot of fluctuations, it still has potential. Friends who built positions last year have already made a lot of money, and there may still be good returns in the future.
Reference price: You can consider buying in batches between 0.00002-0.000018, and the long-term target is to double.
Summary
The short-term fluctuations in the market and the process of deleveraging are actually to prepare for the subsequent upward trend. Although this drop has made many people feel panicked, it actually provides more space for the future upward trend. In this bull market, especially in the absence of large-scale liquidity release, the capital flow is more cautious. Through the clearing of leverage, the market will usher in new opportunities for upward movement. Therefore, investors do not need to be too worried, and should seize the opportunity to accumulate high-quality assets at the bottom.
Finally, there are actually many things that have not been written in, such as specific opportunities and specific decisions, which are often not something that can be summarized in an article.
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