You can find high-potential trades and catch early moves if you understand money flow and sector rotation.
There’s a reason why one coin from a sector pumps first, followed by another coin from a different sector. Money doesn’t move randomly—it rotates.
Here are a few key points you need to understand:
🔹 Follow the market cap trend
If money flow is entering low-cap coins, it will likely rotate into low caps across other sectors as well.
If money flow is in mid caps or large caps, funds usually rotate into similar caps in other sectors.
So first, identify what type of coins are pumping:
Low caps
Mid caps
Large caps
Or meme/speculative coins
🔹 Track sector rotation To understand where money is flowing next, you must keep an eye on major sectors.
Here are 6 main sectors where money flow usually rotates:
• Infrastructure
• Layer 1 / Layer 2
• DeFi
• Monitoring / Analytics
• Fan Tokens
• Solana Memes
🔹 Build a sector watchlist Focus on these 6 sectors:
Add them to your TradingView watchlist
Add 5 coins from each sector
Track daily volume and price action
Identify which sector has the most volume
Analyze where money is likely to rotate next
This approach helps you stay ahead of the market, instead of chasing pumps.
I hope you understood my point.
💬 Share your thoughts in the comments