FOLKS surged to $4.73 yesterday and then pulled back. Does it seem a bit fake? Actually, there's no need to panic. Such short-term fluctuations are perfectly normal — essentially, institutions are building positions while retail investors are panicking. The opposing forces will inevitably amplify the volatility. But if we look at the long-term perspective, once the policy benefits and institutional allocations are established, breaking through the previous high of $4.886 for FOLKS is just a matter of time.

Let's first look at the policy aspect. The Trump administration's GENIUS Act has officially introduced a regulatory framework for stablecoins. Over the next three years, the scale of stablecoins used to purchase short-term US debt is expected to increase tenfold. What does this mean? Continuous capital inflows into the crypto market. Additionally, the probability of the Market Structure Bill passing is as high as 77%, with an expected resolution before 2027. By then, the compliance of crypto assets will be significantly improved, and institutional allocation willingness will be fully unleashed. As a listed token on a legitimate exchange, FOLKS will inevitably enter institutional portfolios.

What about the technical analysis? Currently, FOLKS is at the tail end of a downtrend channel. The RSI indicator has already fallen below 30 into oversold territory, signaling a clear rebound. Looking at on-chain data is even more interesting — in the past week, the number of addresses holding over 10,000 FOLKS increased by 12. These are standard sizes for institutions or large investors. Since they have entered, they won't easily sell off. The burn volume in the last 24 hours has also increased by 5%. Although the increase isn't large, the project team’s attitude toward stabilizing the price is very clear, which is a positive signal.

Short-term volatility is noise; the long-term trend is the real signal. Institutions are accumulating at lows, and policies are safeguarding the market. This combination won't go to waste.