This is something natural in the cryptoactive market and if we are not careful, small investors can LOSE money.
We really like Shiba Inu (SHIB) and that's why we brought it as an example, so that all small investors can keep their eyes open to the phenomenon.
SHIB is correcting its price over several days and anyone who is not selling part of the assets could very well be losing part of the profit. Let's understand this idea better. 💡
Investors who make the most money from currencies that appreciate overnight without justifiable reasons are also responsible for their abrupt fall.
A situation called “pump and dump”, or simply inflate and let go.
The whales 🐳 of the market, which we classify as those largely responsible for the pump and dump, buy huge volumes (billions $SHIB ) of SHIB at low values and this movement raises prices quickly.
On the other hand, smaller researchers, who are generally not attentive to long-term movements, end up getting excited and start buying the coins and this movement further helps the visibility of the asset, however, these small investors, generally nicknamed “sardines” They are acting with FOMO (fear of missing a profit opportunity) and buy what they can to guarantee the desired profit.
At the end of the purchase from small investors, the whales 🐳 start to act, putting their profit in their pocket, that is, selling an absurd amount and consequently, bringing down the price of the asset, to the point where they think it's great to start a new cycle asset accumulation, to apply the same strategy in the future. 🤔
The Xplorercoin team is closely monitoring all memecoin movements. Follow the profile on X, Instagram and here on Binance and receive the news first hand.
⚠️ This content is NOT an investment recommendation. All buying, selling and/or investment activities are the sole responsibility of the reader. ⚠️
