Many newcomers to the cryptocurrency world are definitely puzzled by the concepts of gradual rises and falls, so today I will explain it to you!
Confusing Operation One: Gradual Rise
1. Collecting Chips: The main force wants to accumulate chips at a low price. If they rapidly pump the price, it will go up quickly, resulting in a higher cost. Gradual rising is like boiling a frog in warm water, slowly raising the price without attracting too much market attention. For instance, if a coin originally costs 10 yuan, and it is slowly raised to 15 yuan, during this process, many investors may think it is rising slowly and sell their chips, allowing the main force to quietly collect more.
2. Creating Illusions: Making investors feel that prices are steadily rising, forming a false impression of 'sure profit without loss.' This will attract more people to chase and buy in, and as more people buy, the main force achieves its goal. Just like when you see a coin rising a little every day, don't you feel it has great potential and can't help but want to buy?
Confusing Operation Two: Gradual Crash
1. Selling for Profit: When the main force wants to sell, if they suddenly crash the price, they won’t be able to sell their coins at a good price. Gradual crashing allows them to slowly sell their coins at high prices to those investors who are overly optimistic. For example, if the coin price starts at 100 yuan and gradually crashes, falling to 95 yuan on the first day, some investors might think it hasn't dropped much and could rebound, so they buy in. As a result, if it drops to 90 yuan the next day, the main force can gradually sell off their coins and realize profits.
2. Inducing Panic: The gradual decline process increases the psychological pressure on investors. Seeing prices continuously drop, many will panic and sell their coins. Once the panic reaches its peak, the main force can buy back these sold coins at a low price, completing a round of harvesting.
In the cryptocurrency world, it is essential to learn more and not be misled by superficial phenomena. Paying more attention to market dynamics and project fundamentals will help you avoid being led by the main force!