H is very hot, but the contract data reveals a dangerous signal

Recently, the discussion about H has indeed been quite active, with many people asking about its future trend. After reviewing recent data performance, I want to share some observations because H still shows a clear difference compared to other popular coins during the same period.

H vs DMC: What Do Position Volume and Net Value Indicate

To understand the true bullish strength of H, you need to look at two key contract indicators. H’s 24-hour contract position volume has surged significantly, and the contract net value remains strongly positive. This indicates genuine new long positions are continuously entering, with major players increasing their holdings.

In contrast, DMC’s trend shows the opposite. Its 24-hour contract position volume is shrinking, and the contract net value has shifted to inflow, suggesting that closing short positions is the main activity. There are hardly any new long positions added, and the bullish momentum has clearly weakened. Although both are rising, the underlying capital dynamics are completely different.

Never Try to Top-Tick in This Position

Since major players are still continuously injecting funds into H, going against the trend and shorting at high levels is like fighting against the main force. It’s very easy to get trapped. Some people try to rely on luck to catch the first wave of major players’ distribution, but this approach is not very meaningful and has a low success rate.

The most important thing now is to recognize the situation: the main players are still in the attacking phase. Trying to chase the top is essentially trading against the trend. The risk-reward ratio here is not worth taking.

Long Positions Still Have Opportunities, But Must Be Done Like This

What about going long? Honestly, at this price level, it’s already quite high, and the risks are amplified. But it’s not entirely hopeless; the key is to be disciplined.

The safest approach is to patiently wait for support levels on smaller timeframes to show a pullback, then enter lightly. Remember, set stop-loss orders first and avoid fighting against the market. If you can catch the point where major players start their first distribution, you’ve already won half the battle.

However, there’s a common mistake to watch out for: seeing H rise quickly and wanting to chase the rally. When it accelerates after reaching a high, it often exhausts itself, but some traders are reluctant to cut losses. Don’t be blinded by the current gains; when the price is too high, it’s time to exit. Protect your capital so you can stay in the game longer.