How to Tell If a Price Pump Might Be Fake

In crypto (or stocks), not every price jump is the real deal. Sometimes it’s just a trap to get people to buy high before a dump. Here are some red flags to watch out for:

1. Low Trading Volume

Price is going up, but no real buying behind it. If volume isn’t increasing with the price, that’s suspicious.

2. No Real News or Catalyst

The price suddenly shoots up, but there’s no announcement, update, or reason behind it? That’s a big warning sign.

3. Long Upper Wicks on Candles

The price tries to go higher but keeps getting rejected. These long wicks often mean sellers are taking over.

4. Sharp, Sudden Moves

Big spikes out of nowhere, then a quick drop — classic pump & dump move. Smart money sells while others are just getting in.

5. Key Resistance Still Holding

If the price keeps hitting a known resistance level and can’t break through, the move might be losing steam.

6. Whale Distribution

Big wallets or whales start selling right after the price goes up. If they’re exiting, it’s probably not the best time to enter.

7. No Support Below the New Price

If the price drops, there’s no clear support zone to stop the fall. That means it could crash hard without warning.

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