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Recently, there are signs of a rebound in the Meme coin market, with the share rising from a low of 11% to 32%. Many people are excited to see this. But it's important to clarify one thing—the "recovery" of Meme coins is not a return to value; essentially, it's just a cycle of sentiment.
Let's review the timeline. After Meme coins' share dropped to 11% in November last year, it continued to decline, and only now is it rebounding. What is the essence of this rebound? It's the emotional correction after an oversell. Historically, rebounds from lows have sometimes led to big rallies, but we should be cautious this time. We're still in the early stages, the market sentiment hasn't fully heated up, and since Meme coins lack solid fundamentals, they tend to rise quickly and fall even faster.
For traders, the core of this market movement isn't chasing the highs but learning to control risk. The first principle: don't over-allocate. Meme coin markets are highly volatile, so sticking to within 5% of your total portfolio is enough. More than that, and a correction could severely hurt you. The second principle: choose established Meme coins with solid foundations. Previously popular top-tier projects are relatively more reliable; avoid new tokens with high risk of exit scams. The third principle: act quickly in and out. Take profits and exit—don't hold overnight. The volatility of these coins can wipe out all your gains within 24 hours.
Honestly, the essence of Meme coin recovery is speculative trading, not an investment opportunity. You can participate with small amounts to make quick profits, but don’t treat them as long-term holdings.
The bottom line is this—Meme coin gains are "emotion-driven money." You need quick reaction skills to enter and exit. If you lack this ability, instead of risking it chasing hot trends, it’s safer to hold mainstream coins like Bitcoin for steadier returns.