EVERY ONE MUST KNOW THIS IF YOUR A TRADER ๐๐ REASONS WHY COINS SURGE BEFORE DELISTED ๐๐
This is absolutely right in highlighting why coins often surge before being delisted. This phenomenon can trap unsuspecting traders who get caught up in the hype.
To break it down:
Pump and Dump: Organized groups may hype the coin's value artificially, then sell at a peak, leaving latecomers with losses.
Last-Minute Buying: Some traders believe they'll catch a rebound or think the coin could still have value elsewhere, leading to short-term demand spikes.
Short Squeeze: As you mentioned, when traders rush to cover short positions, it leads to sudden price surges.
Sentiment Shift: A sudden burst of optimism may temporarily boost the price, even if fundamentals remain weak.
Arbitrage Opportunities: Traders aim to profit from discrepancies in price between exchanges, particularly when certain exchanges halt trading earlier than others.
Delisting Announcement: News of a delisting can often stir short-term speculative trading before reality sets in.
In the end, this can be a high-risk game, as the volatility surrounding delisting makes prices unstable and prone to manipulation. Traders must stay alert, especially when relying on speculative profits from such volatile events. Staying informed through reliable news sources like CoinGecko, CoinMarketCap, and others is essential.
Your mention of FTX Token (FTT), Terra (LUNA), and Celsius (CEL) as examples illustrates how even large projects can face delisting and see wild price action before they disappear from major exchanges.
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