#SUPRA In the digital currency exchange, the trend characteristics of individual coins generally have the following several types:

Strong independence

Standalone coins are usually only traded on a specific exchange and have weaker correlation with other mainstream cryptocurrencies or the overall market trends. The price fluctuations are mainly influenced by the buying and selling power within that exchange, project updates, and platform-related policies. For example, if the project team of a standalone coin conducts a promotion on the exchange where it is listed, it may cause the price to rise, while other coin prices may not change significantly at this time.

Volatility

Due to the lack of a broad market base and sufficient liquidity, trading small amounts of funds can cause significant price fluctuations for individual coins. In addition, due to the shallow trading Depth, large sell or buy orders can easily lead to sharp price increases or decreases. For example, within a certain period, the price of a specific individual coin may skyrocket several times due to the large purchases by individual major holders, followed by a rapid decline in price as the major holder sells off.

Trends are hard to sustain

The standalone currency is difficult to form a long-term stable upward or downward trend. Its price is mostly affected by short-term factors. When it rises, it is difficult to sustain the increase due to the lack of sufficient buying support. When it falls, it is also difficult to quickly stabilize due to the concentration of selling pressure. It often presents a quick reversal trend after a big dump.

Affected by the news

Due to the relatively weak value support of the standalone coin, the progress of the project, cooperation, technical updates, and the attitude of exchange towards it all have a significant impact on its price. For example, if the project announces cooperation with a well-known enterprise, the price may rise significantly; conversely, if negative news such as technical vulnerabilities in the project is reported, the price may experience a big dump.

High liquidity risk

When the market sentiment is not good or investors' attention shifts, the trading activity of standalone coins will significantly decrease, the bid-ask spread will increase, and investors may face the dilemma of being unable to buy or sell at reasonable prices, or even in extreme cases, a sharp price decline due to no buyers.