Binance Delist Announcement MDX, POLS, DOCK, BOND: These Coins Are Pumping 🚀🔥 Do You Know Why ?? Here is the reason I'll breakdown 👇

In typical scenarios, when a major exchange like Binance announces the delisting of a cryptocurrency, it often leads to panic selling, causing the coin's price to drop significantly. This reaction is driven by the fear of reduced liquidity and accessibility.

However, if coins that are announced for delisting are pumping instead of dropping, several factors could be at play🫡.

1️⃣ Reason

Short Covering

When Binance announces it will delist a coin, traders who were betting that the coin's price would drop (known as "short sellers") need to buy back the coin to close their positions. This buying activity is called "short covering." It can cause the coin's price to go up temporarily because:

👉 Demand Spike: A sudden surge in demand as short sellers rush to buy back the coin to avoid potential losses.

👉 Supply Reduction: The increased buying pressure reduces the available supply in the market, pushing prices higher.

2️⃣ Reason

Manipulation

Sometimes, big players or groups of traders manipulate the market, especially around the time a coin is set to be delisted. Here's why they do it:

👉 Hunting Stop Losses: These traders deliberately drive the price pump to trigger stop-loss orders set by short traders. Stop-loss orders are automatic sell orders triggered when the price reaches a certain level to limit losses. By triggering these orders, they cause further downward pressure on the coin's price.

👉Liquidating Beginner Traders: Beginners Open shirt order sell when they see a coin's price dropping rapidly. Market manipulators exploit this by driving the price up quickly, causing panic among beginners and forcing them to wallet liquidate.

👉Profit Opportunity: After causing a price drop, manipulators might buy the coin at a lower price from panicked sellers. They can then wait for the price to recover slightly or stabilize before selling it again at a profit.

1st comment 👇 important