What has been the hottest in recent months? Of course, the meme series.
The hottest in the meme series is Pepe, which has driven the entire meme wealth myth.
For coins like this, no one can know about them before they rise, because they belong to a completely new sector; only when they have risen dozens or hundreds of times will people start to pay attention, and various narratives will emerge.
Therefore, very few people have made money on Pepe, but many will pay attention to this sector and buy other coins in the meme series.
It turns out that the vast majority of coins have not risen, and some have even fallen; recently, the market has been rising, but those coins in the meme series are all falling.
Why is this? Because as signs of Pepe's market peaking appear, it means the main players are starting to exit; when the main players exit, it means the funds in this sector are withdrawing.
In this case, those coins with small market caps, which are essentially worthless memes, will only see their risks increase continuously.
Pepe, in fact, I reminded him of the risks back in the middle of this year.
Although it recently broke the historical high again, and many people think it will rise further, in my view, breaking the new high this time is a greater risk.
If it doesn't break, it's okay; everyone is still watching, but if it does break, many people will think a new market trend is about to begin.
But in reality, if we look at the overall market, we will find the signs.
It is clear that the first round of rises, the second round of rises, and the third round of rises are getting smaller; this indicates that the strength of the bulls is slowing down.
The second round's break of the previous high is very small, and the third round's break of the previous high is even smaller; the strength of the breakthrough is weak, which indicates that the bullish strength has weakened.
The trading volume has also formed a divergence; prices are constantly breaking new highs, but the volume is shrinking.
This indicates that while the price is breaking new highs, the incoming funds are actually weakening, which is a strong signal of inducement.
So it is obvious that there is large capital exiting from Pepe; the recent rise is due to emotional retail investors entering, so the price increase is not strong, and the volume is also weak.
This is also why the meme series is so weak lately; Pepe, as the barometer for this sector, has shown signs of large funds fleeing, meaning those smaller coins have even less funding to support their rise.
If you can identify these signs in advance, you won't blindly chase this sector just because Pepe broke the historical high recently, thus avoiding risks.
