If you don't know what's under the hood - don't buy. And don't build a trading strategy solely based on charts. Let's break it down with an example.
In this chart, there is a coin that is necessary for participants of an investment game. Any smart guy passing by will quickly determine that the coin has fallen. In reality, the worst period for the game was precisely during its price increase, when players realized that it was more profitable not to play the game and not to use the coins, but to hold them and wait for the price to rise - just to sell them off.
The game effectively stopped, turning into a regular pyramid.
After that, a decision was made to radically restructure the economy and implement mining for active participants, with periodic halvings, stretching the process to infinity. Players started to mine new coins, but it became unreasonable to hold them and the price gradually returned almost to the starting point. This deprived speculators of profit.
Result: despite the fact that the price plummeted, the project earned again and continues to operate. The mined coins end up in the hands of active participants, while inactive ones receive crumbs. There are no expenses for the project, no reserves for the authors, everything circulates within the system.
In this chart, there is a coin that is necessary for participants of an investment game. Any smart guy passing by will quickly determine that the coin has fallen. In reality, the worst period for the game was precisely during its price increase, when players realized that it was more profitable not to play the game and not to use the coins, but to hold them and wait for the price to rise - just to sell them off.
The game effectively stopped, turning into a regular pyramid.
After that, a decision was made to radically restructure the economy and implement mining for active participants, with periodic halvings, stretching the process to infinity. Players started to mine new coins, but it became unreasonable to hold them and the price gradually returned almost to the starting point. This deprived speculators of profit.
Result: despite the fact that the price plummeted, the project earned again and continues to operate. The mined coins end up in the hands of active participants, while inactive ones receive crumbs. There are no expenses for the project, no reserves for the authors, everything circulates within the system.