1. Technical Analysis (TA) – Chart Patterns & Indicators
- Trend Analysis: Check if the coin is in an uptrend (higher highs & higher lows) or downtrend.
- Support & Resistance Levels: A breakout above resistance could signal a pump, while a breakdown below support may lead to a dump.
- Volume: Increasing volume during an upward move confirms strength; low volume pumps may be fakeouts.
- RSI (Relative Strength Index):
- Overbought (RSI > 70): Possible dump soon.
- Oversold (RSI < 30): Possible pump soon.
- Moving Averages (MA):
- Golden Cross (50MA > 200MA)**: Bullish signal.
- Death Cross (50MA < 200MA)**: Bearish signal.
2. Fundamental Analysis (FA) – Project Health & News
- Upcoming Events:
- Major partnerships, listings on Binance/Coinbase, protocol upgrades, or token burns can trigger pumps.
- Negative news (hacks, regulatory crackdowns, team exits) often cause dumps.
- Tokenomics:
- Low circulating supply + high demand → Potential pump.
- High inflation (unlock events, excessive staking rewards) → Possible dump.
- Adoption & Utility:
- Real-world use cases & growing user activity → Long-term pump.
- Dead project with no development → Likely dump.
3. On-Chain Data – Smart Money Movements
- Whale Transactions: Large buys/sells can indicate future moves (check Etherscan, Nansen, Glassnode).
Exchange Netflow:
- More deposits → Dump likely(people selling).
- More withdrawals → Pump likely (accumulation).
- Funding Rates (Futures)
- Extremely positive → Over-leveraged longs, risk of liquidation dump.
- Extremely negative → Short squeeze pump possible.
4. Market Sentiment – Social & Media Hype
- Social Volume: Check LunarCrush, Santiment for spikes in mentions (high hype → potential pump).
- Fear & Greed Index: Extreme greed → possible correction (dump). Extreme fear → possible bounce (pump).
-Whispers & Rumors: Telegram/Discord groups, Crypto Twitter influencers often move markets.
5. Pump & Dump Patterns (Manipulation)
- Low-cap coins (Micro/Small Cap): Easily manipulated by whales.
- Sudden spikes with no news: Could be a P&D group at work (check if the volume is organic).
- Followed by rapid sell-off: Classic dump after the pump.
Final Tips
✅ Avoid FOMO: If a coin pumps 100%+ in a day, wait for a pullback.
✅ Use Stop-Losses: Protect against sudden dumps.
✅ Check BTC & ETH Trends: Altcoins often follow Bitcoin’s direction.
✅ Beware of Low Liquidity Coins: Easier to manipulate.
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