Having been in the cryptocurrency circle for a long time, the most common thing is that when the price drops, people curse the whales, and when it rises, they shout bull market. Many retail investors think that 'the whale is just watching the little chips in my hand.'
Brothers, don’t overestimate yourselves — the whale’s calculations are much deeper than you think.
Let me tell you a true little story:
There was a small coin GAMA, with an issuance price of 1U, circulating 7 million pieces, and retail investors held over sixty percent.
A funding team had secretly accumulated 2.8 million pieces at the bottom, originally planning to pump the price, but when it reached 1.3U, early retail investors started to dump crazily, and they couldn’t hold on; instead, they got trapped. What to do? They could only 'wash.'
Step 1: Gradually cut losses
The coin price slowly slid from 1U to 0.75U, with no volume and no news. Retail investors saw 'it’s going to crash,' so they ran first, and the whale took the opportunity to buy low.
Step 2: Reverse and trap bottom buyers
Suddenly, a big bearish candle dropped to 0.55U and then pulled back to 0.85U. Those who thought it had reached the bottom rushed in to buy, but the whale then crashed it to 0.5U, and these people got trapped, their mentality collapsed.
Step 3: Collaborate with panic emotions
Once the negative news of the project party 'withdrawing funds' came out, GAMA dropped to 0.4U, and retail investors were completely desperate, clearing out and running away, while the whale continued to collect goods with a smile.
Guess what happened next?
With a small amount of capital, the price easily returned to 0.9U. Old retail investors dared not chase, and the cost of new entrants was all around 0.9U.
The wash ended, and the whale's chips increased from 2.8 million to 4.5 million, with an even lower average price, and the market's floating chips were cleaned up completely, allowing them to pull as they wished later.
In short, washing the plate is 'blood changing' — getting rid of low-cost retail investors who can dump at any time and replacing them with high-cost investors who won't sell easily.
So, next time there’s a crash, don’t blindly curse the whales; learn to see the logic, and you might be able to tell whether this is a signal for a pump.
'A crash is not the end; it’s the whale changing blood. Understand the logic, and you can position yourself in advance.'