Look at those perfect breakouts on the candlestick chart—do you really think that's a natural trend? No, that's often a trap.
Last week, I saw a ridiculous rally in a new coin—298% increase in the morning, the community went into a frenzy, with many shouting "Market Launch" and rushing in. And what happened? The price hit a top and then dropped sharply, with a single-day volatility of 317%, and short-sellers' liquidations exceeding $52 million.
This is not a coincidence; it's the most classic tactic in the crypto world: first, a violent rally to attract followers, then a quick dump to harvest. I've been in this circle for many years and have seen too many such scenarios. Today, I’ll reveal the main players’ cards so you can understand how this game is played.
**Step 1: Find the prey**
The big players don’t operate blindly. They target coins with a story but highly concentrated circulating supply. Recently, those AI concept coins are typical—over 95% of the holdings are in the top ten addresses. Such a market is easy to manipulate; the price moves as they wish—if they want it to go up, it goes up. Project teams and market makers are working together, creating a wealth effect through rapid price increases, and retail investors see others making money and rush in.
**Step 2: Draw a beautiful chart**
Once the main players have accumulated enough chips, they start to act. They choose to strike during periods of low liquidity, suddenly exerting force to quickly push the price above key resistance levels. From a technical chart perspective, it’s a perfect breakout, a beautiful breakout point, making retail investors think the opportunity has arrived. But in reality, everything is under the control of the main players.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
5 Likes
Reward
5
5
Repost
Share
Comment
0/400
ColdWalletGuardian
· 7h ago
It's the same old trick again, and someone always falls for it.
View OriginalReply0
GateUser-afe07a92
· 7h ago
I've seen through this trick long ago. It's always the same to cut the leeks. Really annoying.
View OriginalReply0
MevHunter
· 7h ago
Here we go again, I've seen this too many times, really.
View OriginalReply0
MidnightGenesis
· 7h ago
On-chain data shows that the top ten addresses hold over 95% of the supply, which is a ticking time bomb, as expected.
View OriginalReply0
AirdropChaser
· 7h ago
Here's another article teaching people how to trade cryptocurrencies, essentially a risk transfer tutorial. Soon, there will be new newcomers suffering heavy losses and joining the group to seek comfort.
Look at those perfect breakouts on the candlestick chart—do you really think that's a natural trend? No, that's often a trap.
Last week, I saw a ridiculous rally in a new coin—298% increase in the morning, the community went into a frenzy, with many shouting "Market Launch" and rushing in. And what happened? The price hit a top and then dropped sharply, with a single-day volatility of 317%, and short-sellers' liquidations exceeding $52 million.
This is not a coincidence; it's the most classic tactic in the crypto world: first, a violent rally to attract followers, then a quick dump to harvest. I've been in this circle for many years and have seen too many such scenarios. Today, I’ll reveal the main players’ cards so you can understand how this game is played.
**Step 1: Find the prey**
The big players don’t operate blindly. They target coins with a story but highly concentrated circulating supply. Recently, those AI concept coins are typical—over 95% of the holdings are in the top ten addresses. Such a market is easy to manipulate; the price moves as they wish—if they want it to go up, it goes up. Project teams and market makers are working together, creating a wealth effect through rapid price increases, and retail investors see others making money and rush in.
**Step 2: Draw a beautiful chart**
Once the main players have accumulated enough chips, they start to act. They choose to strike during periods of low liquidity, suddenly exerting force to quickly push the price above key resistance levels. From a technical chart perspective, it’s a perfect breakout, a beautiful breakout point, making retail investors think the opportunity has arrived. But in reality, everything is under the control of the main players.