#CryptoRegulation This chart shows a massive price spike followed by sideways consolidation, which resembles a "pump and dump" or a parabolic move with distribution.
Pattern:
Parabolic spike from $0.10 to $3.86.
Quick retracement and range-bound movement (consolidation).
MACD is bearish, volume dropped sharply.
How to Trade:
Avoid buying after the spike — risk of dump is high.
Wait for a breakout:
Above $3.86 (previous high) = possible continuation (buy breakout with tight stop).
Below $2.50 or key support = short opportunity.
Use tight stop-losses due to extreme volatility.
Best reward setup: Buy a confirmed breakout above resistance with volume, or short if it loses support and volume spikes downward.