Recently, FHE has been gaining some attention, with a 31.13% increase over the past 24 hours. The current price is stuck at 0.10518. Trading volume is 278 million, with open interest at 219 million. This simultaneous rise in volume and price, along with a significant increase in holdings, suggests that new funds are actively accumulating rather than short sellers being forced to cover.

Let's first look at the technical aspect. Short-term support is around 0.09250—this was the previous high point before a volume surge. If the price retraces to this level with declining volume, it could be an opportunity for phased entry on the left side. The strong resistance level above is at 0.12800, close to the lower boundary of previous dense trading activity.

The key points are these two: either the price stalls and retraces at 0.12800, or it breaks through with increased volume. If it truly surpasses 0.12800, there is room to go up to 0.15000. But caution is necessary—given the high volatility, there is also a risk of rapid pullback.

Regarding FHE itself, it is a product in the privacy computing sector. Fully homomorphic encryption's core is enabling computations on encrypted data without exposing the data itself. To use an analogy, it's like processing data inside a safe with bulletproof glass—people only see the results but cannot see inside.

However, there is limited information about the token layer. Details about circulation and unlock schedules have not been disclosed, so this area warrants close attention. Logically, whether FHE can succeed ultimately depends on whether the ecosystem applications are willing to adopt its privacy services.

From first principles, the market's privacy demand mainly centers on direct use cases like transaction anonymity. More complex on-chain data computation needs are not yet urgent. Whether FHE's technology maturity can truly be applied in practical scenarios is the key to long-term stability. In the short term, the current hype is indeed driven by capital accumulation. Whether it can sustain long-term depends on whether genuine project teams will start using it.