The Dark Truth Behind SUDDEN Cryptocurrency Pumps: Part 3 – The Illusion of Gains 🔻
Coins like DOT, SAND, and MANA are suddenly pumping with upto 100% gains in a day, but don’t be fooled—these coins are far below their all-time highs (ATH) and these pumps are often orchestrated manipulations, designed to trap retail investors for years.
The Cycle of Pump and Dump 🚩
1.Shillers and KOLs : Influencers push coins, claiming massive potential, but consider the facts—tokens like X Token may never reach their ATH again due to increased circulating supply and market competition. You’re just being their exit liquidity
Example:
Imagine X Token hit an ATH of $5 with 10 million tokens in circulation. Its market cap was $50 million. Today, with 30 million tokens in circulation and the price at $2, the market cap is now $60 million. To reach the $5 price again, the coin would need to hit a market cap of $150 million, which is much harder to achieve with a higher circulating supply and more competition.
2.Orchestrated Pumps:
•Market Manipulation: Whales and market makers artificially inflate prices by buying large amounts, creating a surge that attracts retail investors.
•Hype & FOMO: Social media and marketing campaigns stoke FOMO, pushing late investors to buy in at peak prices.
3.The Trap for Retail Investors:(playing with the mind )
•Holding During Downturns: Retail investors often hold on, hoping for a recovery, as prices fall, leading to significant losses.
•Lack of Exit Strategy: Without a plan, many hold onto losing positions too long, hoping for a rebound that never comes.
4.Market Makers and Whales:
•Price Manipulation: Once the price surges, whales sell off their holdings, causing a sharp price drop, leaving latecomers with heavy losses.
•Leaving Investors Guessing: Erratic price movements confuse investors, leading them to buy high and sell low.
How to Navigate the Dark Waters of Crypto Trading
•Never Chase Green Candles: Even if a coin is pumping, don’t jump in. The rise could be artificial, leaving you stuck with losses. Miss the train but don’t force yourself into it
•Understand Market Cap & Circulating Supply: Learn about a token’s supply and market cap. If supply is increasing rapidly, it will be harder for the price to rise.
•Enter When It’s Dark and Red: Buy during downturns when prices are lower, not during pumps. Be patient and invest with a long-term view.
•Diversify Your Portfolio: Spread your investments across multiple coins to reduce risk and increase your chances of profit.
•Take Profits—Don’t Just HODL: Set realistic profit-taking targets and sell when you reach them.
•Educate Yourself: Understand market cycles, tokenomics, and news that impacts prices. The more informed you are, the better prepared you’ll be.
Conclusion
Crypto markets are full of potential but also ripe for manipulation. Coins like XLM, SAND, MANA, and DOT may seem like big opportunities, but the pumps are often short-lived and designed to trap you.
While some coins may indeed do well and even hit new ATHs, the probability is low. So, taking profits when you can never hurts—trust me on that. Develop a strategy, educate yourself, and be ready to act wisely. In crypto, if something seems too good to be true, it probably is.
And follow me for more information