Dark Secret of Crypto Market: Rugpulls and manipulation
The cryptocurrency market has always been known for its volatility and unpredictability. However, a more insidious threat hides under the surface: Rugpulls. In this article, we will deepen the world of manipulation of cryptocurrency, focusing in particular on the analysis of the graphs of the candelabra and the trading strategies to identify these scammers.
What is a rugpull?
Rugpulls are a type of pump-and-dump pump scheme in which an individual or group artificially inflates the price of a cryptocurrency by spreading false information on its value. They do it by creating false posts on social media, releasing misleading press releases or even manipulating online forum to create a false narrative around the coin.
The role of the Candela rankings
Candela graphics are a fundamental tool used in technical analysis to identify trends and models in financial markets. In the context of cryptocurrency trading, candle graphics can be used to detect and identify rugpulls. Here’s how:
- Volume analysis : a significant peak of the price followed by a rapid decline is often indicative of a pump and dump pattern.
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Trading strategies to identify rugpulls
- Recognition of graphic models : use candelabra graphs to identify the well-known models associated with pump-e-dump patterns, such as the formation of “head and shoulders”.
- In indicators of rigged coins
: Create personalized indicators that signal a suspicious activity, such as a sudden increase in the price followed by a drop or a turnaround.
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protect you from rugpulls
- conducting in -depth research : before investing in a particular cryptocurrency, thoroughly seek the project and its team.
- Diversify your portfolio
: spread your investments on multiple cryptocurrencies to minimize risk.
- Stay informed : keep up to date with the news and trends of the market to identify potential rugpulls before they occur.
Conclusion
Cryptographic markets are intrinsically volatile, but rugpull can have devastating consequences for investors. By combining technical analysis, the recognition of graphic models and the monitoring of social media with caution and diversification, you can protect yourself from these scammers. Remember, vigilance is the key in the world of cryptocurrency trading.
