Guys, let’s talk about “the denominators for the percentage drop and the gain needed to break even are different,” using this data from $DOLO as a reference.
Binance Spot, 11/06 14:00–15:00 (Beijing time): the price rose 0.68% in this hour, with a trading volume of 2,329.85 USDT, 1.5 times that of the previous hour. The closing price for the period was 0.02206 USDT.
After a price falls, the gain needed to return to its starting point is usually greater than the percentage it fell, because the gain is calculated from a lower base. A rise and a fall of the same percentage do not simply cancel each other out. This describes the math behind the percentages; it doesn’t tell us whether the price will return to its starting point, nor can it tell us how long that might take.
When you see claims like “it fell this much, so rising by the same amount will bring it back,” write down the two starting points first—the difference will become much clearer.
#DOLO #CryptoChatter
Binance Spot, 11/06 14:00–15:00 (Beijing time): the price rose 0.68% in this hour, with a trading volume of 2,329.85 USDT, 1.5 times that of the previous hour. The closing price for the period was 0.02206 USDT.
After a price falls, the gain needed to return to its starting point is usually greater than the percentage it fell, because the gain is calculated from a lower base. A rise and a fall of the same percentage do not simply cancel each other out. This describes the math behind the percentages; it doesn’t tell us whether the price will return to its starting point, nor can it tell us how long that might take.
When you see claims like “it fell this much, so rising by the same amount will bring it back,” write down the two starting points first—the difference will become much clearer.
#DOLO #CryptoChatter