Recently, there has been an interesting phenomenon: the rebound strength of new coins is far surpassing that of mainstream coins. Why is this happening?



To put it simply, there are too many short positions piling up in the market. When the overall market slowdown occurs and it becomes difficult to continue declining, those short-sellers start to get uneasy. They are eager to close their positions to "save themselves," and once there is floating capital, they buy in directly to cut losses. This influx of passive buying drives the price up directly. Because new coins generally have relatively lower liquidity, their volatility becomes particularly intense.

How to operate at this stage? It depends on the situation:

The Meme sector has already seen significant gains in this wave, so continuing to chase may not be very cost-effective. ETH is still repeatedly bottoming out, but from a certainty perspective, blue-chip old coins like AAVE, although not experiencing explosive growth, have the most solid underlying logic.

The key is to choose overlooked assets for accumulation. Don't buy in when popular assets are crowded with people—that's a typical high-level entry. Instead, look for those neglected, with light trading volume, and wait for the next rebound rotation. This is the most efficient approach.
ETH-2,95%
AAVE-3,07%
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NftRegretMachinevip
· 01-06 18:23
Short squeeze liquidation, new coins taking off, this move is quite interesting Wait, is AAVE really solid? It doesn't seem to have much progress either Lurking in obscure coins is indeed a tough move, just worried that once you’re in, it might never recover New coins are highly volatile, and stop-loss orders probably have to fly along too Meme coins are indeed a bit tiring this round, even the bagholders should reflect on it
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MetaMaskVictimvip
· 01-06 04:02
Short positions closing can indeed impact small-cap coins; the logic is sound, but you need to be bold. Newer coins with low liquidity are a double-edged sword; it's great when they rise, but even worse when they fall. Currently, Meme is mostly being bought by bagholders; my friend is already trapped. Lurking in obscure coins sounds good, but in practice, who knows if they'll stay dormant forever? AAVE is really stable, but it just lacks excitement.
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RunWhenCutvip
· 01-05 09:55
Short covering pushes prices up. The liquidity of new listings is weak, so the volatility is intense. I agree with this logic, but the real profit still comes from picking obscure varieties to lay low.
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ProtocolRebelvip
· 01-05 09:52
Short squeeze is really the best time to add positions. The recent rebound of these new coins is caused by big players being forced to cut losses and throwing money in. Old coins like AAVE are indeed stable, but the returns are really ordinary. You still have to look for those trash coins nobody cares about to get some gains. I'm wondering why everyone is still chasing Meme coins. That stuff has long been overextended. Bottom-fishing for obscure coins is a good idea. When the rotation comes, they'll take off. Honestly, those entering new coins now are gamblers, but sometimes gamblers make more money than cautious investors. The rebound caused by institutions closing short positions is a huge profit if you catch it this time. Don't listen to people praising AAVE as very safe. Nothing in this market is truly safe. Is small trading volume in obscure coins an advantage? I need to think about this logic... still a bit hesitant. Lately, I've been watching new coins hit the daily limit, feeling like I missed out on billions.
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CompoundPersonalityvip
· 01-05 09:52
Short sellers bottom out and dump the market, making newly listed coins the high-volatility harvesters of retail investors. Chasing high on Meme tokens is just asking for trouble; instead of choosing bottom-tier coins, go for the hottest ones. Lurking in obscure coins is the real strategy, waiting for rotation to come. Tokens like AAVE are the ones that will survive long-term.
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JustHereForAirdropsvip
· 01-05 09:50
Short squeeze is like a printing press; the liquidity of new coins is really easy to manipulate.
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NightAirdroppervip
· 01-05 09:32
Short squeeze bagholders, new coins are the real hype. This wave was indeed driven by passive buy orders, quite interesting. Meme coins have already surged so much, chasing after them is pointless; the fate of the bagholders is written on their faces. Hidden gems are where the surprises are; popular coins are just harvesters of retail investors. I’m optimistic about AAVE, but now is not the time. Waiting to buy the forgotten projects at the bottom—that’s real skill.
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