The phenomenon of 'slow rise and rapid fall' in the cryptocurrency market usually occurs during market rebounds or uptrends. In simple terms, this is a common 'washing' tactic during a bull market.
When a particular coin rises for several days, the market suddenly experiences a sharp decline, and the gains of those days evaporate instantly. At this point, novice investors and those with weaker psychological resilience are likely to panic and sell their holdings.
Once the price drops to a certain level and stabilizes, the market will slowly recover. When the price retraces to a new high, more trend-following investors will enter the market, and the major funds will once again employ the same tactics, suddenly causing the price to plummet. Such declines are usually rapid and short-lived, sometimes the market can drop by 5%-10% or even 15%-20% within a few days. However, there is no need to worry, as it typically rebounds near key support levels.
In the future, as the potential of the Ethereum chain gradually unfolds, the concept of Musk's 'puppies' is worth paying attention to. It is supported by top teams and independent charitable foundations, and may face huge development opportunities in the future.
