Part 4/11:
Successful traders track where a narrative is within its lifecycle:
Inception: Driven by technological breakthroughs or macro events. Developer activity and technological updates are key here, but prices are usually flat and risks high.
Excitement: When institutional investors and venture capitalists start deploying funds, signaling that the story is gaining momentum.
Social Proof: Retail enthusiasm ignites, with influencers and online communities amplifying the narrative. Prices surge as FOMO (Fear of Missing Out) takes hold.
Liquidity (Distribution): Peak euphoria — non-crypto observers begin asking how to buy tokens, and insiders begin taking profits. This often marks the top.