- The weekly trend of $AVAX is bullish, with strong momentum in recent days. - The price has surpassed the resistance of 12.50 USDT and is at a level of 13.25 USDT. - The RSI (Relative Strength Index) is 60, indicating that the market is in neutral conditions.
*Risk Management*
- *Risk per Trade:* 2% of capital (0.2 USD) - *Profit/Loss Ratio:* 1:1 (4.15% potential gain vs 3.77% potential loss)
*Exit Strategy*
- *Profit Exit:* Close the position when the price reaches the level of 13.80 USDT (Take Profit) - *Loss Exit:* Close the position when the price reaches the level of 12.80 USDT (Stop Loss)
Remember that this is a sample position and is not an investment recommendation. It is important to conduct your own analysis and risk management before making any investment decisions.
Do you think that next weekend the price of $AVAX will go up or down? COMMENT š
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There are several common reasons why the crypto market dumps right after a strong pump. This happens across Bitcoin, altcoins, and even memecoins. Hereās the simplest breakdown:
šØ 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 ā price drops sharply.
š 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.
š 3. Overleveraged Longs Get Liquidated
During pumps, many traders open high-leverage LONG positions. If price dips even a little ā liquidations ā forced selling ā bigger drop.
A ālong squeezeā amplifies the crash.
š 4. Resistance Levels
Price often pumps into:
Major resistance
Previous highs
EMA/SMA levels If it fails to break above ā market reverses.
𤯠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.
š§ 6. Market Sentiment Reset
A pump can trigger:
Greed
FOMO Then a dump resets sentiment before the next move.
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