2026-01-04 16:22:16

This wave of market activity has taught many retail investors a lesson about chasing highs. A certain project surged from $3.7 all the way to $19.47, more than five times, but within a few days, it crashed back down to around $12.43, a nearly 40% plunge, and is still continuing to decline. The community is filled with voices of losses; some have analyzed on-chain data, revealing that the situation is more complicated than it appears.

Looking at these hard data points makes it clear: the current market cap is $244 million, but on-chain liquidity is only $1.19 million. The gap is huge—do the math yourself. The fully diluted valuation reaches as high as $1.244 billion, which indicates a serious valuation bubble. Liquidity is already very thin; with just a little big capital dumping, the entire market can't hold up. On-chain tracking shows 22,330 holders; at first glance, it seems like many participants, but in reality, most are just bagholders at the peak.

The candlestick chart makes this even clearer. The recent surge was entirely driven by capital, with no fundamental support. It shot straight from $3.7 to $19.47, purely a market dominated by funds. On the 4-hour chart, the EMA25 and EMA21 are both stuck around $12, indicating short-term support is very fragile. The STOCHRSI indicator dropped to around 15, which looks like an oversold signal, but in fact, it reflects continuous downward pressure after capital withdrawal.

The core issue is that this project’s pump size is severely mismatched with its liquidity. Using millions of liquidity to support a $244 million market cap is inherently unsustainable. Once the whales start to sell off, retail investors have nowhere to run; this is a classic low-liquidity, high-risk trap. Without real ecological applications backing it, the rise is purely driven by capital speculation, attracting latecomers to take the bait. This routine repeats in every bull market. The current sell-off is just the beginning, and it’s highly likely that the price will continue to drift downward in search of a bottom.

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BankruptcyArtist

· 01-06 19:34

It's the same trick again. Claiming a market value of 244 million when liquidity is only in the millions is outrageous.

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WhaleWatcher

· 01-06 19:06

It's the same old story, with liquidity so limited yet still daring to boast about market value. Just a few days ago, from heaven straight to hell, the guys who bought at the top must be suffering. Low liquidity and high risk, simply put, it's a big trap. Looking at on-chain data makes it clear that it's just a pure capital game with no real support. Retail investors can't escape this situation; it's always the same. A 5x increase should raise suspicion; anything without fundamentals is always like this. The tricks used by these kinds of projects to deceive people haven't changed at all.

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BearMarketSurvivor

· 01-05 19:22

Oh my, this is just another old trick of low liquidity to wipe out retail investors, so boring. --- 5x increase with 1.19 million in liquidity? That's ridiculous, a retail sell order can smash it for half a day. --- Typical Ponzi scheme, no fundamentals at all, just smashing the price to attract bagholders. --- 22330 holders, 99% probably trapped around $19 haha. --- I've seen too many projects like this, every bull market cycle is the same, can't blame anyone. --- The imbalance between liquidity and market cap has reached this level, the whales have already run away. --- Continuing to decline silently, this time it's really hitting bottom. --- Fully diluted valuation of 1.244 billion with only a million in liquidity, even math can't keep up. --- Projects without ecosystem support being pushed this high, there's only one ending. --- EMA indicator is completely broken, short-term support is indeed gone.

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FrontRunFighter

· 01-04 16:50

nah this is literally a textbook liquidity trap setup... $119m market cap on $1.2m on-chain liquidity? that's asking to get sandwiched lmao. the math doesn't even pretend to work anymore

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just_here_for_vibes

· 01-04 16:50

It's the same trick again. With only millions in liquidity, they still dare to support a market cap of 244 million. Do they really think retail investors are fools?

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LightningClicker

· 01-04 16:48

It's the same old trick again, supporting a market cap of 244 million with a million in liquidity—aren't they just asking for death? The dumping has just begun, and many more people are waiting to lose money later. Don't chase it. This kind of project with no fundamentals at all relies solely on funding to create a false prosperity. Doesn't it look familiar? A typical low liquidity trap—retail investors get caught holding the bag every time. Rushing from 3.7 to 19.47 should be a warning; truly valuable things wouldn't be this crazy.

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RugpullAlertOfficer

· 01-04 16:30

This is a typical prelude to a rug pull. The liquidity is only 1.19 million supporting a market cap of 244 million. It's funny. It's the same old trick—pumping to attract retail investors, dumping to sell off, and smashing the market every round. Those who buy at the peak have to cut losses; there's no way around it. When big funds dump, it crashes immediately, and retail investors can't even run. This trash project has no real application, relying solely on funding, and will eventually decline gradually.

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SelfStaking

· 01-04 16:26

1.19 million liquidity supports a market cap of 244 million. Isn't this just a time bomb?

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