Privacy coin ecosystem rotation begins, ARPA starts to pull back after a 50% surge in 24 hours

ARPA experiences a short-term surge driven by the privacy coin ecosystem rotation. According to the latest news, as of January 20th, ARPA has risen 50.75% in 24 hours, with a current price of $0.01 and a peak of $0.02. However, it is noteworthy that the price has already retraced 5.39% within an hour, while trading volume soared to $320 million, and market capitalization reached $28.1 million. What is driving this behind the scenes? Where are the risks?

The Rotation Effect in the Privacy Coin Ecosystem

Why did ARPA suddenly surge?

ARPA is not rising alone. According to recent information, the privacy coin ecosystem is undergoing capital rotation. Other privacy-related tokens that are moving in tandem with ARPA include DUSK (up 88.28% in 24 hours), SCRET (up 21.53%), and similar privacy computation tokens. This is not coincidental — the market is shifting from hot coins to privacy computation narratives.

As a privacy computation on-chain data project, ARPA fits perfectly into this rotation. The surge in trading volume (a 3402.54% increase compared to the previous day) indicates that a large amount of capital is chasing this narrative. Multiple trading signals on the 19th already hinted at ARPA’s upward potential, suggesting that institutions and active traders have long been aware of this opportunity.

Surge in Market Participation

A 24-hour trading volume of $320 million speaks volumes. Compared to ARPA’s market cap of only $28.1 million, the trading volume is over 100 times the market cap — what does this imply? Short-term capital is engaging in high-frequency trading, with obvious sentiment-driven activity rather than fundamentals.

Risk Signals of a High-Position Pullback

Price fluctuations are already showing signs

Quick updates show ARPA’s current price at $0.01, but real-time data indicates a price of $0.018482. A detail worth noting is that after reaching a high of $0.02, the price has already started to decline. More clearly, within the past hour, ARPA has fallen 5.39%.

This pullback is not noise. When a coin surges 50% in a short period and then experiences a significant hourly retracement, it usually indicates:

• Early profit-taking has begun
• Chasing high positions encounters selling pressure
• A sign of sentiment peaking in the short term

Comparison with DUSK for reference

The trading advice mentioned for DUSK is quite instructive: after an 88.28% increase in 24 hours, analysts already warned that “overbought conditions are obvious, prone to high-level pullbacks,” and suggested waiting for a correction to the $0.20–$0.22 range before lightly trying long positions. This logic applies equally to ARPA — rapid rise to a high level followed by a pullback is a common phenomenon.

Key Points to Watch Moving Forward

Two critical factors for short-term trend

ARPA’s future performance depends on two factors: first, whether the privacy coin ecosystem rotation continues; second, whether there are new fundamental catalysts in the market. Currently, this surge is mainly driven by market sentiment and capital rotation, with no substantial project-level positive news.

Risks to be cautious of

The news mentions progress such as the launch of blockchain applications in Hong Kong port community systems, but these are industry-wide events, not specific developments for the ARPA project. From publicly available information, ARPA has not recently announced major project milestones to support its price. The rise is more driven by narrative resonance than by fundamental improvements.

Summary

ARPA’s 50% surge is a result of privacy coin ecosystem rotation, not a breakthrough in the project itself. The spike in trading volume reflects short-term enthusiasm, but the 5.39% retracement within an hour already signals risk. For such highly volatile tokens, participants should exercise caution — chasing high involves obvious risks, and waiting for a pullback may be a more rational approach. The key is to distinguish whether this is a normal part of ecosystem rotation or an impulsive, emotion-driven chase.