Why Does the Market Suddenly Dump While Pumping?
Ever wondered why the market suddenly dumps when everything was pumping?
Here’s why it happens
1. Whales Take Profit
Big players (whales) often sell large amounts after a pump. Their sell-off causes panic, and others follow.
2. Overleveraged Positions
Too many people using leverage? A small drop triggers liquidations—leading to a bigger crash. It’s a domino effect!
3. Fake Pump Traps
Sometimes, pumps are planned to lure buyers in—just to dump on them. It’s called a “bull trap.”
4. News or FUD Hits
Even one negative headline can flip the mood of the entire market.
5. Resistance Levels
Strong resistance zones often cause rejection. If many traders expect a rejection, they sell in advance.
Moral?
Always use stop-loss, don’t FOMO in, and secure profits when possible.
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