Recently, many people have been paying attention to NIL's trend. Let me break down this wave of upward movement; it doesn't feel like a simple emotional rally.

**Why is it rising? Resonance across three levels**

First, the privacy computing sector has been re-identified by capital. NIL mainly focuses on next-generation privacy computing and data security. Under the current AI and data compliance background, projects like this are back in the investment spotlight. The sector is heating up, and projects with low prices and high recognition are usually the first to attract funding.

Second, the previous correction actually cleaned out a lot of floating chips. After dropping from the high point, it traded sideways for a long time or even declined slightly, which basically washed out weak hands. Now, only patient-held chips remain in the market. Once some capital tries to push it up, selling pressure will significantly ease.

Finally, the volume performance. This rally is not a straight surge but a gradual increase in trading volume, with the price moving upward in stages. This rhythm is very similar to the standard structure of capital testing the waters → pullback for confirmation → push higher again. Compared to purely emotional coins, this is healthier.

**How to view the current market**

On short-term charts (1-hour and 4-hour), after the rise, the market is now in a consolidation phase. This is normal digestion after strength. No signs of top formation like volume expansion with long upper shadows, and no quick pullback either.

On the daily chart, it is still in the early rebound stage, far from the end of the main upward wave. If volume can pick up and stabilize at key levels later, there is still room for upward movement.

The capital side is also relatively rational, without extreme FOMO feelings, indicating that more thoughtful funds are entering rather than retail investors rushing in en masse.

**Next steps**

The most probable scenario is a consolidation with a slight bullish bias. If the pullback does not break previous lows or key support levels, it could easily form a secondary push higher. If a short-term breakout above the consolidation zone's upper boundary occurs with increased volume, a rapid acceleration trend might develop.

The only thing to be cautious about is: when prices surge and volume increases but the price doesn't keep up, that’s a true short-term top signal.

**How to operate**

For short-term trading, avoid chasing highs; wait for the pullback to confirm the structure. Lightly increase long positions, with stop-loss below the structure. If volume and price don't coordinate during the surge, reduce positions or take profits.

For swing or medium-term strategies, NIL is more suitable for a "buy low and hold patiently" approach. No need to go all-in at once; entering in several batches is safer. Once the daily trend is broken, decisively exit.