🚨 MEMEFIUSDT
At around 12:03 PM (PKT)on May 6, 2025, MEMEFIUSDT experienced a sudden vertical pump, rocketing from approximately 0.00530 to a high of 0.00718 — a move of over 35% in under 2 minutes. However, what followed was even more telling: a sharp reversal and fade, pulling the price back to the 0.00560s range.
This is not just volatility — it’s a liquidity grab, and traders need to understand the mechanics behind it.
📈 The Pattern: "Pump & Dump Liquidity Sweep"
This pattern occurs when large players push the price upward rapidly, triggering:
Stop-losses of shorts above resistance
Breakout longs entering late
Trapped retail orders chasing the wick
Once the liquidity is swept and late longs are trapped, market makers reverse the price. This generates both funding income and position liquidation for profit. This classic trap is often followed by a slow bleed or consolidation as seen in your chart.
🧠 Technical Breakdown:
Bollinger Bands: Massive expansion during the pump followed by compression — a volatility contraction pattern.
RSI: RSI(6) peaked above 70 during the pump but quickly fell into neutral territory. Current RSI is in the 60s, suggesting no strong continuation pressure.
Volume: Huge volume spike on the green candle, followed by tapering volume — confirming exhaustion and likely market maker manipulation.
VWAP: The price is below VWAP (0.00635) now, showing that bulls are no longer in control.
MA(7), MA(25), MA(99): Price has slipped below the shorter-term MAs after the spike, signaling a reversal and breakdown structure.
⚠️ What This Means for Traders:
Don’t chase green candles blindly — the highest liquidity often lies above previous highs.
These types of moves are not driven by organic buying but by liquidity engineering.
The best trades come after the trap — either shorting the rejection or buying after true support reclaims.
✅ Key Takeaways:
Pattern Identified: Liquidity Grab (Fakeout Pump) → Trap → Fade
Target Audience: Retail traders who chased the top got trapped.
Smart Move: Let the shakeout happen. Look for VWAP reclaims or RSI divergence for real entries — not emotional ones.
📊 MEMEFI is volatile and meme-driven. Treat it like a hot stove: touch only with a plan.
