Why Does the Market Suddenly Crash During a Pump?
Ever noticed how the market seems to be soaring—and then out of nowhere, it dumps? Here’s what’s usually going on:
Whales Cash Out
Large investors (aka whales) often sell into the hype after a strong pump. Their exit triggers fear, and retail traders start selling too.
Leverage Wipeouts
When too many traders are overleveraged, even a small dip can trigger mass liquidations—causing a chain reaction of forced selling.
Bull Trap Setups
Sometimes, pumps are engineered to lure in unsuspecting buyers—only for the price to crash right after. Classic bull trap.
FUD or Negative News
A single piece of bad news can spook the market and cause a rapid shift in sentiment.
Key Resistance Levels
Prices often stall or reverse at major resistance zones. Anticipating a rejection, smart traders may sell before the rest catch on.
The takeaway?
Use stop-losses, avoid FOMO, and take profits while you can.
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