Shaf
Verified member
As with all markets, there is always speculations about the prices of some coins and tokens being manipulated by whales or market makers to suit their needs.
This often happens in areas of support and resistance and affects mostly those who trade futures and use leverage.
If your stop loss is within a particular region, it could be hit, you will get stopped out of the trade and price moves again in the direction you actually anticipated.
Another form of manipulation happens with newly listed coins whose prices are pumped on listing, causing retail traders to FOMO and then become bag carriers when the whales decide to dump. ICP has been cited a lot as an example of this type of pump and dump manipulation.
With the volatility of cryptocurrency, it's always best to be cautious with your trades. Knowing about such manipulations and how they can avoided will be helpful to your risk management strategy.
This often happens in areas of support and resistance and affects mostly those who trade futures and use leverage.
If your stop loss is within a particular region, it could be hit, you will get stopped out of the trade and price moves again in the direction you actually anticipated.
Another form of manipulation happens with newly listed coins whose prices are pumped on listing, causing retail traders to FOMO and then become bag carriers when the whales decide to dump. ICP has been cited a lot as an example of this type of pump and dump manipulation.
With the volatility of cryptocurrency, it's always best to be cautious with your trades. Knowing about such manipulations and how they can avoided will be helpful to your risk management strategy.
