In the crypto market, sharp dumps often happen unexpectedly — the price drops in minutes, liquidating thousands of traders. But in reality, these movements always have signs, and those who can read them — do not get caught under the roller. Below is a clear checklist of when to really be afraid of a sharp and strong dump.

1. Large inflows to exchanges (inflow)

If the cash flows show that a large number of tokens are entering the exchange, especially from large wallets, this is a worrying signal. Whales do not keep assets on exchanges — they only bring them there for selling.

Look:

- Inflow increases over the day

- The chart of large orders shows an increase in sell

- Netflow is sharply going negative

2. Lack of counter demand

Even if sales are increasing, the market can hold — if there is a buyer. But if:

- Buy orders are sharply decreasing

- Volumes on Binance Spot are decreasing

- The order book is empty below the current price

— this means the market is not ready to catch a fall.

3. Aggressive pressure in the order book

If you see:

- Constant market sales in large blocks

- Buy orders are not keeping up

- Large sell limit orders are pulling down

— these are signs of a controlled dump, where whales lead the price to liquidations.

4. Increase in open interest + negative funding

When open interest (OI) is rising and funding becomes negative, it means that:

- Many re-opened shorts

- Whales can suddenly reverse the market and arrange a short squeeze — but this works in the opposite direction too:

- If funding is positive, and everyone is in longs while OI is increasing — prepare for a dump.

5. Panic in the tape and candles without volume

When the price is plummeting and volumes are low, this is not the bottom. It means there are no buyers at all.

And conversely — if a spike in volume appears during a decline and a candle with a long tail down — this is a trap for short sellers and a chance for a bounce.

Conclusion:

You should be afraid of a dump not when the price is falling, but when key signals coincide:

- Large inflows to the exchange

- There is no buyer in the order book

- Sales volume is above average

- Funding is skewed to one side

- Sharp drop without volume

If you see these signs — exit or hedge. It’s better to wait on spot or in stablecoins than to be liquidated at a moment you could have predicted.