$BABY Three days of a 100% surge—what’s behind the rise? Has it already topped out? As a retail investor, how can you catch the next leg of the market?

First, BABY, as a staking project within the Bitcoin ecosystem, went through a major pullback after its listing due to selling pressure from an airdrop, and it ended up consolidating and cleansing for as long as a year. The “chips” were cleaned up very thoroughly—basically there are no trapped holders. The clear accumulation at the bottom is the real core reason that caused BABY to rise.

The main reasons are:
1. Previously, the institutions that created the wallet started cooperating with Aave【depositing 300w into Aave to support DeFi development】
2. On May 10, Baby is about to face a large-scale unlock【136 million tokens】. The project team may use the unlock to front-run hype—pushing the price up ahead of distribution
3. Smart money and whales have an especially large long/short imbalance【95%-5%】. So if the bulls want to sell, they must have short positions ready to take the other side. Combined with the fact that on-chain funds show no signs of selling, the price will likely keep rising in the short term—so those who think it has reached the top can short into the accumulated chips, creating conditions for shorts to absorb the momentum. This is why BABY’s recent surge has been so large!

So has it already topped out? As a retail investor, how can you catch the next opportunity in the market? In the next post, Sanjin Ge will continue to explain in detail.