## Two mechanisms that almost no one talks about
Pump is not magic and not a conspiracy of market makers.
This is *liquidity mechanics*. And this mechanics always has a limit.
Today we will analyze two main mechanisms that explain why any pump eventually fades and turns into a correction or sideways movement.
# 1️⃣ Mechanism #1: each subsequent percentage costs more
This is the key reason that ordinary traders do not take into account.
When the price rises, its nominal value increases.
That means:
- **each subsequent +1% requires more liquidity**,
- to raise the price by the same percentage, you need **more and more dollars**,
- the buyer has to buy out **more sellers** at higher levels.
This is roughly how it looks:
- growth from $1 to $1.01 — easy, there is an empty order book
- growth from $10 to $10.10 — already noticeable volumes
- growth from $100 to $101 — this is a completely different liquidity
At the early stage of the pump, the price skyrockets because:
- order books are empty,
- there is no resistance,
- the buyer encounters few sellers.
But the higher the price — the more massive the resistance.
And the pump starts **spending more energy than it produces**.
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# 2️⃣ Mechanism #2: at the top, profit fixation kicks in
As soon as the price approaches important zones — sellers instantly appear there:
- those who have been **waiting for a long time** to close a position
- those who **do not believe** in the continuation of growth
- bots that **automatically sell** on overbought signals
- traders fixing **profits as planned**
All this creates:
- **sell walls**,
- slowing of impulse,
- candles with long upper wicks,
- overheating of volumes,
- reversal or transition to sideways movement.
That is, the pump hits a wall
**not to the ceiling of the price**,
and to the **ceiling of liquidity**.
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# 📌 Conclusion
The pump always fades because:
### ✔ 1. Each new percentage increase requires more liquidity.
### ✔ 2. At high levels, a seller — profit fixer appears.
This is not a conspiracy or manipulation.
This is simple math of supply and demand.
Understand the mechanics — and the chart will stop seeming chaotic.
#️⃣ #MarketMechanics 📊 #LiquidityFlow 💧 #CryptoAnalysis 🔍 #Altcoins 🚀 #PriceAction