- Cryptocurrency traders have been advised not to short every pump.
- There is a new trend where coins pump over 50% in a day with no identifiable reason.
- The emerging trend has a way of liquidating short positions.
Crypto traders have been advised not to short every pump. The advice appeared in a post on the X app by Whale Analysis, a character that claims to help people make money in the bear market. According to Whale Analysis, there is a new trend where a few coins pump over 50% in a day with no identifiable reason.
Whale Analysis noted that this trend has become a weekly occurrence and has a way of liquidating short positions. He identified a few coins that have experienced such significant pumps in the past few weeks. They include CYBER, PERP, TRB, and HIFI.
Data from TradingView shows that CYBER rose from $3.65 on August 30 to $16.23 on September 1. It gained 341% in four days before falling to a current price of $5. Between September 5 and 8, PERP rose from $0.64 to $1.23, gaining 91%. The price consolidated after the surge and currently trades at $0.65.
TRB’s rally has lasted longer than that of CYBER and PERP. The move that began on August 26 has seen TRB climb from $9.9 to $48.9 before dropping to a current price of $39.2. TRB gained 398% at the rally’s top, making it one of the most outstanding performers in September 2023. However, HIFI comes top among the set with a 589% gain between September 2 and 16. It rose from $0.39 to $2.63 before consolidating. HIFI traded for $1.16 at the time of writing, according to data from TradingView.
Whale Analysis advised traders who intend to short these coins to use a small percentage of their futures portfolio, keep low leverage and set stop losses. According to the market analyst, no technical or fundamental analysis would work for these coins since they intend to liquidate as many people as possible. He believes it is a deliberate pump-and-dump approach used by the whales.