Be cautious, the massive surge you're seeing is driven by liquidity providers. Notice how multiple coins, including $SOL , $BTC , ETH, BNB, DOGE, WIF, and BONK, all spiked within minutes. This strategy is designed to liquidate short traders with high leverage. Once some traders get caught in the dip and are trapped, the prices are likely to drop again.
Liquidity providers often initiate sudden price increases across various cryptocurrencies. Coins such as SOL, BTC, ETH, BNB, DOGE, WIF, and $BONK can experience these swift pumps. The intention behind these moves is to target short traders, forcing liquidations. High leverage traders are particularly at risk during these orchestrated pumps.
When traders get trapped in the dip following these artificial price increases, it becomes challenging for them to recover. After achieving their goal of liquidating short positions, liquidity providers typically allow prices to fall back. This cyclical manipulation can catch many traders off guard, emphasizing the importance of cautious trading strategies.
