THE UNDERSTANDING REGARDING PUMP IN CRYPTOCURRENCY MARKET TRADING

Hello to everyone in this wonderful community today and on this great platform at large today and if so we give God the praise for the sustenance of life and good health, for it is by his mercy that we are still here once more.

I welcome you all to yet another great weekend amidst us all today. I want to believe that we all are having a good time with friends and family, and if so, we say praise be to the almighty for sustainability of life and good health.

It is a pleasure to be here in your midst with another great topic which I have tagged THE UNDERSTANDING REGARDING PUMP IN CRYPTOCURRENCY MARKET TRADING.

This is an interesting topic which I want to discuss with you all and as such I urge you all to stay put and relax while I begin the discussion for today. I wish you all a happy reading!

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In the digital currency realm, there are activities that are foster by certain individuals and these individuals are referred to as Market Makers. These individuals dictate the movement and trend patterns of all the assets in the market hence they control the market system and prices.

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The movement of cryptocurrency price only depicts two particular type of movements and these movement are called the uptrend movement and also the downtrend movement. I believe we all are familiar with the both types of trend movement but for more emphasis I will like to explain briefly regarding the both movements.

The uptrend movement is a significant type of movement that indicates a rise in assets price which is depicts long green candlesticks and this also signifies a buy entry trade. When this is seen in the market, it entails an uptrend movement as price of assets keep increasing in price.

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On the other hand is the downtrend movement. The downtrend movement is a kind of movement that takes a downturn direction. Here the sign of a downtrend is depicted by a long red candlesticks facing downward direction and it also signal a fall in asset price. This scenario indicates that the said asset in question is being sold off in the digital market.

All the above is just a summary of the two major types of trend movement in the digital currency market. Now the reason for the explanation is to give us insight regarding the said topic for today and since a foundation has been created, let us talk about the topic for today.

THE PHENOMENON REGARDING PUMP AND DUMP IN CRYPTOCURRENCY MARKET TRADING

When we talk about pump in cryptocurrency market trading, we are talking about a sudden rise in price regarding assets in the cryptocurrency market and this pump does not just occur by itself. It is facilitated by certain individuals and we talked about these individuals earlier who are called the market makers.

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They initiate the spike in asset prices regarding cryptocurrency as such when that happens, we get to see a strong green candlesticks facing an upward direction and that signals a buy entry trade. At this point, traders with little or no skills regarding cryptocurrency trading get involved in the market as they will see it as an opportunity to take advantage of the market.

With that, some might get lucky as they execute their trade on sighting that buy signal. They eventually get profited if they enter the trade earlier before the spike occurred. So the pump is initiated by the whales in the market as a few collective buy a particular asset which they causes a spike in assets price.

There are other factors that causes spike in cryptocurrency prices regarding certain assets. Some of which are good news regarding certain assets, especially when the potential of an asset is revealed. You get to see a huge buy regarding that asset in the market and this is as a result of the news being circulated among traders and investors of the digital currency.

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CONCLUSION

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Good news about certain cryptocurrency assets. Makes an asset price to pump high as we get to see a lot of traders, investors and other cryptocurrency enthusiasts purchasing the particular asset for the purpose of making profits when the price rises as people continue to get the assets and hold them for a longer period of time because of their potential.

I will have to drop the pen at the juncture and when next I am here, I will be discussing with us regarding the downtown that comes with pump in cryptocurrency market. Thank you all for having me today. I hope you all learned a thing or two in what we have discussed so far. I will see you when next I am here.