Chappu crypto

There are several common reasons why the crypto market dumps right after a strong pump. This happens across Bitcoin, altcoins, and even memecoins. Here’s the simplest breakdown:

🚨 1. Profit-Taking by Traders

After a big pump, many short-term traders sell to lock in profits.
When a lot of people do this at once → price drops sharply.

🐋 2. Whale Manipulation

Whales often:

Push price up (pump)

Attract retail buyers (FOMO)

Sell large bags at the top (dump)

This is a classic liquidity trap.

📉 3. Overleveraged Longs Get Liquidated

During pumps, many traders open high-leverage LONG positions.
If price dips even a little → liquidations → forced selling → bigger drop.

A “long squeeze” amplifies the crash.

📊 4. Resistance Levels

Price often pumps into:

Major resistance

Previous highs

EMA/SMA levels
If it fails to break above → market reverses.

🤯 5. Buy the Rumor, Sell the News

When a hyped event arrives (ETF, announcement, upgrade), the pump ends and the market dumps because the move was already priced in.

🧠 6. Market Sentiment Reset

A pump can trigger:

Greed

FOMO
Then a dump resets sentiment before the next move.

If you want, tell me which coin or timeframe, and I can explain what likely caused that specific pump-and-dump.
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