4. Launch Price Gap Analysis:
Once the token is live, compare the launch price to the IPO or presale price. If the price rises significantly above the presale value, it indicates a high probability that early investors or gifting participants will start selling their tokens for profit.
5. Market Cap Assessment:
Look at the market cap of the coin at launch. If it is exceptionally high – say, over $300 million to $400 million – it indicates limited growth potential in the short term. Coins that launch at inflated valuations often attract sellers rather than buyers, causing rapid corrections.
6. Avoid Over-entry:
Make sure the token price remains reasonable compared to its IPO valuation. Ideally, the market cap should remain below $400 million. If the price rises too quickly, it becomes risky, as heavy selling pressure can lead to sharp declines.
7. Check for existing trading activity:
Find out if the token is newly launched or has been traded on other exchanges. Coins that have already been traded may have established price patterns, reducing the uncertainty caused by initial volatility.
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