Nothing Gets Priced In During A Bear Market

Firstly, a Market that is experiencing a long-term sell-off is unable to simultaneously price in development and growth. This is the reality that accompanies a bear market. Regardless of whether it is the beginning or final stages of a bear market, the fair value goes out the window. Why do prices rally so high during a bull market? Well, much is due to projects being extremely undervalued.

The initial stages of a bull market are in essence merely restoring fair market value to undervalued projects. This helps one to realize just how oversold assets become during a lengthy bear market. There is really no cause for alarm. If anything, smaller projects receive heavier discounts from the market during these periods. If anything, it’s time to start becoming a little greedy.

I know some are concerned that the token price is not really rising. However, that’s how this dynamic plays out. Eventually, the market will acknowledge the growth and development that has taken place. Unfortunately, this is something that will only really become evident once the market has truly shifted from bearish to bullish.

I have seen this many times. One begins to wonder, many lose hope… and then suddenly, the mother of all rallies. That’s the micro-cap market, especially in a scenario when a project is awaiting acknowledgment and approval from the market. When there has been a lot of development and progress within an ecosystem, the project must wait for approval from the market.

Eventually, patience is rewarded, provided the market has acknowledged the development and effort that has taken place during the bear market. Personally, I think the risk/reward ratio is rather favorable in the case of LEO. Forget the price, focus on the market cap, which will affect the price by default. There is tremendous upside potential.

A Growing Ecosystem Eventually Produces Token Appreciation

With everything that now exists within the LEO ecosystem, it’s ludicrous to think that the market is not going to experience a serious repricing of LEO at some stage. As I said, a market cannot appreciate and depreciate at the same time. Once the downtrend is definitively broken, and a new bull market is well on its way, I believe LEO will begin to appreciate.

This will most likely be met by a period of euphoria, as the market begins to price in the development that has taken place during the course of the bear market. This is typically how these events usually tend to play out. Slowly… then suddenly!