@caleb51albers3rl
Small-cap tokens can sometimes rise during market corrections because they are less correlated with Bitcoin and Ethereum. Speculative traders rotate into these assets seeking higher returns when major coins stagnate or fall. Liquidity in small caps is thin, so relatively small inflows can trigger outsized price moves. Additionally, narratives around innovation, partnerships, or upcoming token unlocks can drive isolated rallies. Community-driven hype and social media also amplify demand for niche projects. While this behavior can provide short-term opportunities, small-cap rallies during corrections are risky, as they often lack strong fundamentals and may reverse sharply if overall sentiment worsens.
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