ACT surges 20-fold in a day, how to trade the aftermath?

AI MEME Coin Act I: The AI Prophecy (ACT) has experienced multiple setbacks from its developers and once fell into a low point, but has now dramatically turned around. On November 11, major exchanges, including Gate.io, announced the listing of ACT, leading to a surge of over ten times its value, with its market capitalization skyrocketing from less than $20 million to $400 million.
$ACT stands for “AI Community Token,” and its story is one of resilience, unity, and growth, aimed at connecting the cryptocurrency community. The original intention of the $ACT project is to create a decentralized community focused on promoting AI research, education, and collaboration. Through $ACT, enthusiasts, developers, innovators, and community members come together to promote AI knowledge, making AI more accessible and empowering people to understand and engage with this transformative technology.
According to market data from Gate.io, as of the publication date, ACT’s intraday increase exceeded 1500%, with its market cap soaring to a peak of $400 million. The trading volume over the past 24 hours surpassed $230 million. With this AI meme coin being heavily speculated in the market, how should it be traded in the future?

ACT Market Data

• Current Price: 0.5128 USDT
• 24-hour Increase: 47.70%
• 24-hour High: 0.6373 USDT
• 24-hour Low: 0.3180 USDT
• 24-hour Trading Volume: 702,598,146 USDT
• Funding Rate: 0.00226341
• Open Interest: 28,944,536
• Whale Trading Signals: Long 788,715; Short 119,122; Long-Short Ratio: 6.6:1
• Net Outflow: 1,998,578 USDT
• Support Level: 0.3686 USDT
• Resistance Level: 0.6193 USDT
• Fear and Greed Index: 75 (Extreme Greed)
• RSI: Oversold, trend is bullish
  

  Trading Strategies

  Strategy 1: Short-term Long Strategy

• Direction: Long
• Entry Price: 0.5200 USDT (slightly above the current price)
• Stop-loss: 0.4900 USDT (below the support level)
• Target Price: 0.6000 USDT (near the resistance level)
• Reason: The current market sentiment is extremely greedy, indicating strong expectations for price increases. The RSI indicator shows oversold conditions, which may trigger a rebound. Entering near the current price allows for profit from short-term fluctuations.

  Strategy 2: Breakout Trading Strategy

• Direction: Long
• Entry Price: 0.6400 USDT (after breaking the resistance level)
• Stop-loss: 0.6100 USDT (below the resistance level)
• Target Price: 0.7000 USDT (psychological level)
• Reason: If the price breaks through the resistance level of 0.6193 USDT, it may trigger greater buying interest. Setting a stop-loss helps control risk and ensures timely exit during price pullbacks. The target is set at 0.7000 USDT to take advantage of market upward momentum.

  Outlook

  Act I is an AI project funded by a16z founder Marc Andreessen, with members including Truth Terminal founder Andy Adyrey. Light, the founder of Pleb Capital, disclosed that Act I features uned and spontaneously generated interactions, multi-agent dynamics, ongoing and long-term observations, diverse AI participants, and real-world environments. As AI agents are currently isolated, Act I will become an important infrastructure for interaction between these projects and humans.
  Now, the $ACT project has evolved into a decentralized AI community, with its core mission being to democratize AI knowledge and make it accessible to everyone. Through various initiatives, resources, and community-driven content, $ACT aims to break down barriers to AI knowledge, helping the public understand AI. The community focuses on supporting foundational AI education, encouraging ethical discussions, and backing research and development in the field.
  In this extreme greed market environment, $ACT has the potential to continue rising, particularly after breaking through key resistance levels. However, investors should remain vigilant and set reasonable stop-loss levels to manage risk. In the short term, it is essential to keep an eye on market sentiment and trading volume changes to adjust strategies as needed.
  
  

  Author: Icing, Gate.io Researcher
  

  *This article represents only the views of the researcher and does not constitute any investment suggestions. All investments carry inherent risks; prudent decision-making is essential.
  

  *Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.