2026-01-05 07:26:29

How to spot concentration risk before you enter a trade?

Use a distribution bar chart to check wallet concentration. If the top 10 holders control most of the supply, that's a major red flag. Why? Because a single large exit can trigger an immediate price collapse with minimal selling pressure needed.

Compare that to a more evenly distributed token. Broader holder base means less downside volatility and more stability at entry points.

Bottom line: Always analyze holder distribution before making a move. It's one of the quickest ways to gauge whether you're entering a setup with real staying power or walking into a dump waiting to happen.

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BloodInStreets

· 22h ago

It's the same theory again, but I've seen too many stories where the top 10 holdings with 95% of the coins still end up doubling... The key is who is pushing the cart.

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OnchainDetective

· 01-05 15:22

According to on-chain data, projects where the top ten holders account for over 70% can basically be directly passed. This wallet distribution pattern is a typical manipulation tactic used by market makers... I have already made this judgment long ago.

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GateUser-a5fa8bd0

· 01-05 07:56

This move is brilliant; only after falling into the trap before do I understand... I stay away from those with over 70% of holdings in the top 10.

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ImpermanentPhilosopher

· 01-05 07:55

I should have said this earlier: too many people enter the market without even looking at the position distribution, and then they get crushed by big players' sell-offs and are left stunned.

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GraphGuru

· 01-05 07:46

Wow, the fact that the top 10 whales hold most of the circulating supply can really kill the entire market with one slap.

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Web3Educator

· 01-05 07:41

ngl this concentration thing hits different when you actually see it in action. watched three of my students get absolutely wrecked last month because they skipped the holder distribution check... they're still in hopium mode lol

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PermabullPete

· 01-05 07:41

All the big players have already taken everything, so what's the point of analyzing? Even if the top 10 group together, looking at the distribution is pointless.

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