Recently, several new tokens launched on Binance have almost always experienced a 'certain drop' trend—once the price opens, it basically just keeps falling. This pattern has become a consensus in the crypto circle; everyone knows that as long as it’s a new token launch, short-selling is almost a guaranteed profit operation.
But last night's 'Layer' token pulled a fast one. Its trend was unique: first it fell, making everyone think they could follow the previous short-selling script, luring them into shorting. Then, starting in the early morning, it surged dramatically, directly beginning to squeeze the short positions.
'Layer' can master this 'fall first and then rise' operation because?
To put it simply, this 'fall first and then rise' trend is not as simple as mere market fluctuations. We can analyze it from several angles:
The Psychological Game of the Market: Every time a new token launches, the market is always filled with various expectations and emotions. For example, after 'Layer' fell at the opening, everyone thought, 'Ah, this token is nothing special, it must be another way to fleece retail investors,' so most people went to short it. Once this sentiment fermented, it instead provided space for market manipulators to operate. After prices began to rebound, unprepared short investors became 'cannon fodder'.
The Behind-the-Scenes Manipulation of Large Funds: Do you think that the price fluctuations of cryptocurrencies are purely a reaction to market sentiment? In fact, sometimes it is large funds manipulating the market. Just like the trend of 'Layer', it might be a 'trap' deliberately set by certain large fund players. First, they let the market drop, attracting a lot of short-selling funds to enter, and then at a certain moment, they suddenly push up the price, forcibly 'squeezing' the shorts. The purpose of this operation is actually to get those trend-following retail investors to buy in, allowing large funds to profit easily.
Rapid Fluctuations of Sentiment in the Crypto Circle: In the crypto world, sentiment changes quickly. In the morning, prices are falling, and everyone starts to panic, igniting short-selling sentiment; then suddenly in the evening, the market takes a 180-degree turn, and the entire market sentiment reverses instantly. Investors initially thought this was just a 'common phenomenon', but unexpectedly the market flipped them over directly. As long as this wave of market sentiment creates panic in an instant, many people haven't had time to react, and losses are already locked in.
To be honest, I don't know if the trend of 'Layer' is purely a market phenomenon or a carefully planned layout by large funds. It seems that this 'fall first and then rise' operation is almost like a script designed intentionally. It represents a harvesting of retail investors' inertia.
If you are also in the habit of short-selling when new tokens launch, you might have been caught off guard by this 'trap' of 'Layer'. Everyone knows there are risks in the crypto market, but this 'fall first and then rise' operation forces people to rethink their short-selling strategies.
Contracts come with risks; enter the market with caution.#币安上线LAYER #Layer
