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In the cryptocurrency market, the launch of new tokens is always an exciting moment. However, wise investors will carefully assess potential shorting opportunities. First, we need to focus on Circulating Supply, which is a key factor. It is crucial to calculate the total supply and initial Circulating Supply, while also closely monitoring the unlock period and the timing at which private sale investors may sell off. It is worth noting that the smaller the initial Circulating Supply, the greater the potential selling pressure in the future.
Another important consideration is the airdrop situation. If there is a large-scale token airdrop, it may create significant selling pressure at the opening. Therefore, analyzing the scale and timing of the airdrop is crucial for predicting market trends.
For traders considering shorting, adopting a strategy with low leverage can effectively reduce the risk of liquidation, while focusing on opportunities during price pullbacks. The ideal entry points usually occur in the following situations: when the price is consolidating at a high level, there are large sell orders in the order book, or a significant bearish candle appears with increased volume.
In summary, when assessing shorting opportunities for newly launched tokens, it is crucial to comprehensively consider the size of the Circulating Supply, potential selling pressure, and the release speed of airdropped tokens. By carefully analyzing these factors, investors can develop more robust and effective trading strategies.