$LPT Pump and Dump Pattern (Evident): The chart clearly shows a classic "pump and dump" pattern for LPT.
Prior to May 31, 2025, 17:30: The price of LPT was relatively stable, hovering around the $5.072 mark. Trading volume was moderate.
May 31, 2025, around 17:30: A significant surge in price occurred, pushing LPT from approximately $5.072 to a high of $14.357 within a short period. This rapid increase was accompanied by an enormous spike in trading volume, indicating strong buying pressure. This is the "pump" phase.
Post-Pump Decline: Immediately after reaching its peak, the price of LPT began to fall sharply and rapidly. This downward trend is accompanied by continued high, but declining, volume. This is the "dump" phase.
Current Price: As of the screenshot, LPT is trading at $8.273, which is significantly lower than its peak but still higher than its pre-pump level. The price is currently below the EMA(7), EMA(25), and EMA(99), suggesting a bearish short-to-medium term trend.
Indicators' Behavior:
Volume: The most striking indicator is the volume. The massive green volume bars during the pump and the subsequent red bars during the dump are textbook signs of manipulated price action.
RSI(6): The Relative Strength Index (RSI) shot up dramatically during the pump, likely entering overbought territory (above 70 or 80), and has since moved down, indicating the loss of buying momentum. At 38.191, it's currently in bearish territory but not yet oversold.
EMA (Exponential Moving Averages): The price initially moved significantly above all EMAs during the pump. As the dump occurred, the price crossed below the shorter-term EMAs (EMA 7, 25) and is approaching the longer-term EMA(99), suggesting a strong bearish reversal.
Why "Every Coin Pump and Dump"?
Your observation that "every coin pump and dump" (referencing WCT and now LPT) is a common sentiment in the cryptocurrency market, especially during certain phases. Here's why this happens:
Low Market Cap Coins: "Pump and dump" schemes are most prevalent in cryptocurrencies with lower market capitalization. These coins have less liquidity, making them easier to manipulate with relatively smaller amounts of capital.
Lack of Fundamental Value: Many coins targeted in pump and dump schemes lack strong underlying technology, adoption, or real-world use cases. Their price is driven purely by speculation and artificial demand.
Coordinated Efforts: Often, these pumps are coordinated by groups (sometimes called "pump and dump groups") through social media, Telegram, or Discord channels. They encourage members to buy a specific coin simultaneously to inflate its price. Once the price is high enough, the organizers (and sometimes early participants) sell their holdings, cashing out and leaving late buyers with significant losses.
FOMO (Fear Of Missing Out): The rapid price increase during a pump creates FOMO among retail investors, who jump in at the peak, only to see the price crash shortly after.
Market Sentiment: In periods of high market excitement or when Bitcoin/Ethereum are consolidating, traders might seek higher-risk, higher-reward opportunities in altcoins, making them more susceptible to manipulation.
In Conclusion for LPT:
The LPT chart shows clear evidence of a pump and dump event. While the price is currently higher than its pre-pump level, the sharp decline after the peak suggests that many late buyers have incurred losses. Such patterns highlight the inherent risks of trading highly volatile and potentially manipulated cryptocurrencies. It's crucial for investors to exercise caution, conduct thorough research, and be aware of such schemes.
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