Navigating a bull market requires a clear trading plan and strict execution. In this process, controlling position size and reducing holdings to achieve zero cost is one of the core strategies.
1. Achieving zero-cost positions
In a bull market, the goal is to achieve zero-cost positions. For example, if you bought COMP around $71 and it peaked at $144, choosing to reduce your initial investment position completely near $140 leaves you with pure profit. This is the advantage of a zero-cost strategy. During market adjustments, zero-cost allows you to remain calm, not anxious due to declines, nor making mistakes due to impatience. When prices rise, profits remain, and everyone is happy; when prices fall, the principal remains intact—this is the power of zero cost.
2. Liquidation needs to be done in steps
When planning to liquidate, remember not to sell everything at once. You should operate in phases, first liquidating half of your position, and then observe the market before making further decisions. No one can accurately predict the top or bottom of the market, but referencing some signals can help you judge the peak, such as frequent appearances on trending searches or the altcoin speculation index reaching historical highs. While these data cannot guarantee you sell at the highest point, they are likely to be close to the peak.
BTC returns to its peak! Three hot altcoins that can still be added before ETH breaks new highs!
XRP
XRP has become the focus of the market with its strong upward momentum. This price surge cannot be separated from key technical breakthroughs and the rekindled optimism within the crypto community. At the same time, rumors about SEC Chairman Gary Gensler possibly resigning have brought expectations for improvements in the regulatory environment, further fueling XRP's upward momentum.
This surge is not a short-lived market trend but the result of a breakthrough that traders have long awaited. Over the past four years, XRP has been trapped in a descending triangle pattern, leading to continuous consolidation and downward pressure on the price. However, on November 12, 2024, XRP successfully broke through this pattern, crossing the resistance level of $0.58 on the weekly chart, and this breakthrough directly propelled the price to a 300.8% increase, completely changing the market landscape.
Today, XRP has successfully broken through the critical psychological barrier of $2.2 again. After a brief pullback to $2.29 for a retest, the price quickly rebounded to $2.34. This solid pullback has boosted investor confidence and further indicates the sustainability of the upward trend. Currently, the market's focus is shifting towards the important resistance level of $2.4, which is just 2.6% away from the current price. If this level is broken, XRP will initiate a new round of upward momentum, with the next target pointing to $3.35. This would mean an additional increase of 43.2%, making it one of the most noteworthy crypto assets in the market recently.
XRP's strong performance reflects both technical and market sentiment benefits. Investors should closely monitor subsequent market dynamics, especially potential changes in regulatory policies. As market momentum continues to build, XRP's future trends are worth looking forward to.
DOGE
In the past 30 days, Dogecoin has experienced significant growth, rising from below $0.1 during a consolidation phase to over $0.45. Its value has increased by 350%, and trading volume surged by 1000%, indicating that bullish forces have clearly entered the market. This surge has propelled Dogecoin's market cap from less than $1 billion to $68.78 billion.
The price trend of DOGE shows the potential to continue the similar rise seen in the past 30 days. However, current trading volume has decreased, leading to price fluctuations while maintaining gains within a narrow range. After Bitcoin's price breaks away from consolidation, DOGE is expected to break through the resistance level of the current upward parallel channel. Technical indicators also provide further guidance, with the MACD trend suggesting that consolidation may continue for a while, while the bullish divergence in RSI brings some upward momentum for the market.
Based on these factors, it is expected that the price of Dogecoin will continue to consolidate along the average line until the market welcomes a breakthrough opportunity. This potential trend may not only push its market cap past the $100 billion milestone but also lay the foundation for the price to reach the important threshold of $1. Market participants maintain an optimistic outlook on future trends, and Dogecoin's performance warrants continued attention.
ADA
Cardano's recent price movements show some pressure, with a 8.38% decline in price over the past week. The current trading range is between $0.95 and $1.10, close to the crucial support level of $0.92. In terms of technical indicators, the Relative Strength Index (RSI) is at 34.27, nearing the oversold zone, indicating a potential oversold rebound opportunity in the market. However, the MACD indicator is at a negative value of -0.039, suggesting that there may still be downside risks in the short term.
Despite currently being in an adjustment phase, Cardano has recorded a 102.41% increase over the past month, reflecting its strong rebound potential. If the price can stabilize above the support level of $0.92, market sentiment may gradually improve, with the target resistance level looking towards $1.46. A breakthrough of this key level may trigger a new upward trend. Investors are currently paying close attention to the performance of support and resistance levels to determine Cardano's next direction.
