#Polygon $POL @0xPolygon
This might be the fastest operation to achieve a small target in history~ and the principal only needs 10U.
On the 1st of National Day holiday, open Binance with 10U to buy $4 →→→ by the 3rd, you can earn 7000U.
On the 3rd, use 7000U to buy $Binance life.
Today, earn 7000*2000=14 million U.
In 7 days, use 10 dollars to rake in over 100 million soft sister coins.
Looking back, is making money as easy as breathing! Brothers, if you made money, hit 1.
Behind this frenzy, CZ's role cannot be ignored. Since he returned to the public eye, every like, retweet, or casual comment he makes on Twitter triggers massive on-chain capital flows.
CZ's operation this time is actually transforming himself from the CEO of an exchange to the conductor of emotions.
This is interesting. He no longer needs to participate directly in trading; a like is an alpha signal. The market treats him as a barometer, which is more effective than any technical analysis.
But there is a problem here: a market driven by emotions comes quickly and leaves just as fast. When PALU rises by 300%, it can also drop quickly. Most of the followers will become bag holders.
The truly smart money is actually positioned before CZ even likes something. When he likes it, it's time to sell. Everyone wants to know what CZ will like; what's more important is what he won't like.
This thing called emotional consensus is easy to establish but collapses even easier. When everyone is waiting for CZ's signal, that signal becomes ineffective.
The market is always changing; today's spiritual leader may be yesterday's forgotten flower tomorrow. Not understanding means not participating; understanding means being able to judge how long this emotion can last.
I basically do not participate in this kind of emotional market; at most, I buy a few tens or hundreds of U to gamble on a lottery. At this moment, I would like to share a project I have already invested in: $POL.
This wave of POL's pullback to 0.24 dollars is actually a normal washout in the Layer2 track.
From a technical perspective, the current position is very similar to last year's ETH when it was hovering around 1500 dollars; the RSI has dropped to 32, which is clearly oversold, and the Bollinger Bands have narrowed to the extreme. In this case, it is usually a signal of being ready to take off. I checked the performance of Layer2 tokens over the past two years; after each deep pullback like this, the average rebound is over 40%.
The fundamentals of POL are actually more solid than many people think. In September, the migration from MATIC to POL reached 99%, indicating strong community consensus. More importantly, the TVL increased from 1.5 billion to 2.2 billion, a growth of 46%, which is quite good in the current market environment.
On-chain data shows that the number of holding addresses increased from 5 million to 6.2 million, with new wallets growing by 25%. Interestingly, large holders sold 10% of their positions, while small holders are hoarding, with holding duration increasing from 10 days to 18 days. This kind of differentiation looks like smart money is picking up at low levels.
From the futures market perspective, the long-short ratio is 1:1.05, with slight superiority for shorts, but the open interest has decreased by 12%, indicating that short power is weakening. The leverage ratio has dropped from 12 times to 8 times, and market sentiment is becoming more rational.
I believe this pullback is mainly due to the Fed's hawkish speech and the sideways movement of BTC, which is essentially not closely related to POL's fundamentals. The AggLayer aggregation layer technology indeed has innovative value and can solve the problem of fragmented liquidity across multiple chains, which is significant in the current multi-chain coexistence pattern.
The RWA track has indeed taken off this year; AlloyX has launched a currency fund, and Standard Chartered is the custodian. This combination of TradFi and DeFi is a major trend. Wyoming's FRNT stablecoin choosing Polygon is also a form of government-level recognition to some extent.
From a position management perspective, I recommend building positions in batches, with the first batch entering in the 0.24-0.25 range, setting a stop loss at 0.22, and targeting 0.35-0.40. In terms of risk control, the total position should not exceed 10%, as the Layer2 track is highly competitive, with OP and ARB competing for market share.
However, to be fair, most of the time trading these altcoins can actually be done without too much macro research; the key is to clearly see the technical trends and capital flows. At the current position, the risk-reward ratio is still quite suitable; it just depends on whether you can hold on to it.
Disclaimer: This article is only personal analysis and does not constitute investment advice. Investing carries risks; enter the market with caution! DYOR! #CryptoRecovery
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