A cryptocurrency insider has shocked the crypto world by revealing that Market Makers (MMs) may be artificially influencing cryptocurrency prices. This knowledgeable analyst has provided a set of strategies for investors to exploit this suspected price manipulation. They’ve outlined methods for identifying tokens connected to market makers and explained how to capitalize on the situation.
Market Makers Manipulate Crypto Price Movements
A crypto expert known as ‘Rekt Fencer’ on platform X (previously Twitter) has revealed various methods believed to be used by crypto market makers to manipulate cryptocurrency prices.
Market makers are essential intermediaries in the cryptocurrency market, offering liquidity by placing buy and sell orders to ensure clear and smooth transactions. Their importance is evident in both Centralized Exchanges (CEX) and Decentralized Exchanges (DEX).
Market makers employ various distinctive methods, as claimed by Rekt Fencer, to potentially influence a token’s price. This crypto expert disclosed several tactics employed by these market stabilizers during bull and bear markets.
During a bull market, market makers are believed to impact token prices by permitting investors to purchase as many tokens as desired. Additionally, these market makers instill a sense of urgency and fear among investors as they witness rising price trends. This phenomenon is often referred to as the Fear Of Missing Out (FOMO) effect.
In bear markets, these suppliers of liquidity buy tokens at low prices to be ready for the upcoming bull market. At the same time, they strive to maintain sufficient daily trading volume on centralized exchanges to keep tokens from getting delisted.
A crypto expert presented unique chart indicators for investors and traders to spot the impact of market makers on token price fluctuations. For instance, he brought up the example of Floki (FLOKI), a widely-used meme coin, which reportedly collaborated with DWLabs, a market maker, to reportedly surge the token by an astonishing 772% within three weeks.
How To Spot Tokens Working With Market Makers
Based on Rekt Fencer’s perspective, an investor may identify a cryptocurrency linked to a market maker if the coin undergoes substantial price jumps right before significant news breaks out. Moreover, a persistently growing trading volume without notable price fluctuations is another significant sign. Furthermore, repeated occurrences of pump-and-dump schemes in a cryptocurrency could indicate market manipulation.
Market makers take advantage of investors’ emotional responses during extended market downturns, amplifying fears and causing mass selling of tokens. Following these selling sprees, the token prices typically bounce back to more stable levels, raising suspicions of manipulation in the crypto market.
Rekt Fencer has shared an investment approach for capitalizing on the suspected manipulative actions of market makers. By buying cryptocurrency tokens during periods of accumulation and selling them during distribution, investors may be able to earn profits. Furthermore, he offered a selection of tokens reportedly in their accumulation phase, suggesting potential opportunities for gains.
Read More
- BTC PREDICTION. BTC cryptocurrency
- LIT PREDICTION. LIT cryptocurrency
- LUNC PREDICTION. LUNC cryptocurrency
- USD PHP PREDICTION
- USD COP PREDICTION
- BCH PREDICTION. BCH cryptocurrency
- ORAI PREDICTION. ORAI cryptocurrency
- USD CNY PREDICTION
- EUR USD PREDICTION
- EUR VND PREDICTION
2024-04-24 23:13