$FOLKS This wave pulled from 1.98 to 2.61, forming a classic 'cup and handle' on the daily candlestick chart. The previous high around 2.613 faced a brief resistance, retracing to 2.54 for consolidation; this isn't a top, it's building up momentum.
Many haven't grasped the underlying logic of Folks Finance. It initially rooted in Algorand, and now the hub chain has shifted to Avalanche, utilizing a hub-and-spoke model for cross-chain lending. With Chainlink CCIP, Wormhole, and Circle CCTP all integrated, it means its liquidity pool isn't a single-chain island but a web spanning Ethereum, Base, Arbitrum, Avalanche, BNB Chain, Polygon, and Sei. This architecture is rare in DeFi protocols—Aave and Compound are still multi-chain deployed but suffer from fragmented liquidity, whereas Folks' unified USDC pool design has truly achieved 'one account, all chains accessible' for cross-chain lending.
Diving deeper: the total supply of FOLKS is 50 million, with a circulating supply of about 12.7 million, leading to a circulation rate of less than 26%. Low circulation means the price is extremely sensitive to capital inflow. The team was valued at $75 million during last year's Series A funding, led by Borderless Capital, with Coinbase Ventures, Jump Crypto, and OKX Ventures participating in the seed round. These institutions' cost lines are significantly lower than the current price, showing no incentive to sell in the short term.
The volume contraction during the pullback near the 2.613 previous high indicates that bulls are not in a rush to cash out, but are waiting for a cleaner breakout. The 24-hour trading volume of $18.24 million, for an asset with a circulating market cap of about $32 million, results in a turnover rate exceeding 50%. The chips are changing hands quickly, but the price hasn't dropped—this is a classic case of 'increased volume with chip rotation, high-level absorption'.
Moving forward, the most likely scenario is a sideways digestion of the 2.55-2.60 range's trapped positions before leveraging a breakout above the 2.613 previous high. The first target is 2.85-3.0, with mid-term expectations above 3.5. The support level for retracement is at 2.35-2.40, where the 4-hour MA25 intersects with the previous high-volume trading area; a break below this level would signal a need for caution regarding a weakening trend.
In terms of action, rely on the 2.40 support to go long, with a stop-loss set below 2.25. The trend has already turned bullish.
Many haven't grasped the underlying logic of Folks Finance. It initially rooted in Algorand, and now the hub chain has shifted to Avalanche, utilizing a hub-and-spoke model for cross-chain lending. With Chainlink CCIP, Wormhole, and Circle CCTP all integrated, it means its liquidity pool isn't a single-chain island but a web spanning Ethereum, Base, Arbitrum, Avalanche, BNB Chain, Polygon, and Sei. This architecture is rare in DeFi protocols—Aave and Compound are still multi-chain deployed but suffer from fragmented liquidity, whereas Folks' unified USDC pool design has truly achieved 'one account, all chains accessible' for cross-chain lending.
Diving deeper: the total supply of FOLKS is 50 million, with a circulating supply of about 12.7 million, leading to a circulation rate of less than 26%. Low circulation means the price is extremely sensitive to capital inflow. The team was valued at $75 million during last year's Series A funding, led by Borderless Capital, with Coinbase Ventures, Jump Crypto, and OKX Ventures participating in the seed round. These institutions' cost lines are significantly lower than the current price, showing no incentive to sell in the short term.
The volume contraction during the pullback near the 2.613 previous high indicates that bulls are not in a rush to cash out, but are waiting for a cleaner breakout. The 24-hour trading volume of $18.24 million, for an asset with a circulating market cap of about $32 million, results in a turnover rate exceeding 50%. The chips are changing hands quickly, but the price hasn't dropped—this is a classic case of 'increased volume with chip rotation, high-level absorption'.
Moving forward, the most likely scenario is a sideways digestion of the 2.55-2.60 range's trapped positions before leveraging a breakout above the 2.613 previous high. The first target is 2.85-3.0, with mid-term expectations above 3.5. The support level for retracement is at 2.35-2.40, where the 4-hour MA25 intersects with the previous high-volume trading area; a break below this level would signal a need for caution regarding a weakening trend.
In terms of action, rely on the 2.40 support to go long, with a stop-loss set below 2.25. The trend has already turned bullish.