Cryptocurrency's 'Slow Rise and Sudden Fall': Analysis of Common 'Washing' Techniques in the Market
In the cryptocurrency market, many investors often encounter a phenomenon of 'slow rise and sudden fall', especially during market rebounds or uptrends. This is actually a common 'washing' technique used to eliminate short-term floating chips in the market.
Specifically, after a certain cryptocurrency has risen continuously for several days, the market may suddenly experience a wave of rapid decline, quickly erasing previous gains. At this time, many inexperienced investors or those with weaker psychological endurance often panic and rush to sell their assets.
However, this sharp correction is often short-lived. Once the price falls back to a certain level and stabilizes, the market usually begins to rise gradually again. When the price reaches new highs again, new buying funds may gradually flood in, and at this time, the main funds may again use a sudden drop to undermine market confidence. This sudden drop is often swift and brief, possibly declining 5%-20% within a few days. But in most cases, the price will stop falling and rebound near key support levels.
This repeated oscillation of 'slow rise and sudden fall' is actually the main funds guiding market sentiment through price fluctuations, washing away indecisive chips, and ultimately preparing for the next wave of increases.
Additional Share:
🐶 Trump Concept Meme Coin - CONAN (xBQt)
In the field of Meme coins, CONAN is undoubtedly a rising star! This legendary military dog is the only dog in history to receive the 'Presidential Medal of Heroism', having achieved multiple military feats during special operations, and was personally received by Trump.
🚀 Highlights Recap:
📌 After launching on January 24, it skyrocketed a hundredfold, with a market cap once exceeding $30 million, quickly becoming a dark horse in the Meme track!
📌 The current market cap is around $8 million, consolidating sideways, making it a potential investment opportunity worth paying attention to.