For most investors/traders, the only thing they think about when it comes to Market Makers/pump drivers is pump/dump. But for Whales, this process has 7 steps.
Understanding this will help you easily multiply your account by standing on the shoulders of giants.
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Phase 1: Prepare the position
Positioning involves whales accumulating tokens.
They buy large quantities in small positions over a long period of time to avoid driving up prices and staying undetected.
For coins with low trading volume, whales need to accumulate for a longer period of time.
They can create a pump to stimulate holders to sell. The ultimate goal of whales is to hold the majority of tokens.
This allows them to increase their influence on token prices according to their strategy.
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Phase 2: Token Dumping
Once they have accumulated enough tokens, whales do not immediately push the price up.
Instead, they dump to test market demand and force holders to sell at lower prices.
By pushing the price down, whales can buy more coins at a cheaper price, optimizing their costs.
They often achieve this by selling large amounts and placing fake sell orders.
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Phase 3: Test Pump
Before actually pushing the price, whales conduct a test pump to make sure they can control the market.
This helps them gauge market reaction and the strength of the tokens they hold.
If there is strong selling pressure during the test, it shows that holders still hold a significant amount.
Whales don't like this because it can cut into their profits and hinder price manipulation.
To remove these holders, whales continue the pump-and-dump cycle. If the pump test fails, they repeat phases 1 and 2 to accumulate more coins.
Success in the pump test means they can move on to phase 4. This phase involves executing the first price pump to maximize their profits.
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Phase 4: Start pushing the price
During this phase, whales actually push the price up after removing the majority of holders.
While they cannot eliminate it completely, they can still effectively manipulate the market.
In addition to the number of coins, whales prepare a large amount of Stablecoins, $BTC, and $ETH to control the price movement.
This ensures they can lead the market as planned.
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Phase 5: Dump batch 1
This phase creates strong price reactions. Whales sometimes push prices below their average buying level to further shock holders into selling.
Even if temporary losses occur, the whales are not affected. They have secured enough capital in phase 3 to push the price back up.
The goal is to attract market attention and increase interest in the coin. Despite short-term losses, this strategy creates conditions for large profits in the future.
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Phase 6: Rebalancing
During the rebalancing phase, they sell the excess to retail investors at a certain price, creating a support zone.
This support zone reduces the risk for whales. For example, if you buy at $5 and the price drops to $4.5, you will not sell at a loss.
The whales know this and use it to establish a support price at $5. This process happens multiple times to ensure stability.
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Phase 7: Dump 2/ Sell all
During this phase, whales start selling everything to take profits and exit.
Another method is to place large sell orders and buy back to encourage retail investors to buy more and they have higher support zones to sell further.
With increased buying activity, whales place sell orders at various price levels.
This strategy prevents underselling at one price and maximizes their profits.
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