2026-01-20 06:27:36

On-chain liquidity continues to shrink. Is this reality or psychological suggestion? Look at the trends of those meme coins and various market hotspots, it seems to be evolving.

Honestly, this judgment is based on two things—the overall market atmosphere and many people's caffeine-driven trading instincts.

Interestingly, this has become a good thing. When liquidity becomes scarce, the risk-to-reward ratio starts to become more reasonable. The R/R ratio re-emerges, which for those carefully timing the market means opportunities are quietly accumulating.

MEME-3,56%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

16 Likes

Reward
16
4
Repost
Share

Comment

0/400

GateUser-75ee51e7

· 12h ago

Liquidity shrinks but the R/R ratio improves? I like this logic; it just helps filter out those who open random orders.

View OriginalReply0

Degen4Breakfast

· 01-20 06:56

Is liquidity shrinking real or fake? Anyway, my stop-loss orders keep getting wiped out—that's the real truth.

View OriginalReply0

ForkTongue

· 01-20 06:49

The liquidity squeeze is definitely real, you can see it from that wave of meme coins. Wait, the thing about improved risk/reward ratios is actually the real deal, finally don't have to go all-in like a gambler anymore. Caffeine-fueled trading instinct haha, that's describing people like me, right? It's really just about waiting for that real opportunity to show up, right now it's more of a test of patience actually.

View OriginalReply0

BearMarketBuilder

· 01-20 06:33

Liquidity shrinking? Basically, retail investors are getting cut even more, while big players are quietly accumulating.

View OriginalReply0