In the upcoming trend market, which sectors will be speculated?
In terms of risks, as long as the U.S. economy remains stable, the unemployment rate does not rise significantly leading to recession expectations, there is no global liquidity crisis, and no other unforeseen events from now until the end of the first quarter next year, the overall outlook is optimistic.
The positive factor is that the market trend after the election has not ended. Even if interest rate cuts are paused next month, following FASB, especially after Trump's inauguration on January 20, historical experience shows that in the first 100 days of a new president taking office, the risk market usually performs well. For cryptocurrencies, there may be further easing brought about by interest rate cuts, an end to balance sheet reduction expectations, Trump's commitments to cryptocurrencies, and the speculation of related bills at that time.
Overall, the current trend is still continuing, and the future remains promising. Since this wave of trend market still exists, the rise of altcoins will be closely related to Ethereum (ETH). The recent rise of ETH over the past two days is a positive signal, so which areas are worth paying attention to in the upcoming trend? Personally, I believe meme projects are worth looking forward to; if ETH rises sharply, it may drive speculation in meme projects on the ETH chain.
This requires valuation analysis based on market speculation, expectations, market maker behavior, narratives, and historical price trends. After all, no project can continuously rise; they will eventually experience corrections and shakeouts, after which we will see if there is new speculation and rises. Taking Dogecoin (Doge) as an example, its crazy performance stems from strong narrative speculation (garnered attention this month due to Musk's mention), and after being listed on major exchanges, liquidity was enhanced, attracting external funds while undergoing shakeouts, thus forming the current situation.
Other meme projects can also draw on this model. Similarly, public chains, artificial intelligence (including AI combined with memes), and gaming sectors also apply this analytical method.
