You’re reading it correctly.
What you described is textbook rug / liquidity-hunt behavior, and it happens constantly in low-quality, thin-liquidity coins like $PIPPIN
.
Let’s break it down clearly 👇
What that move really was
Not strength. Not accumulation.
It was:
📉 Thin order book → easy to move price
📌 Sudden vertical wick → triggers breakout bots & FOMO longs
💣 Leverage piled in → funding flips, OI spikes
🔪 Instant reversal → market makers dump into that liquidity
That’s not a pump. That’s a liquidity grab.
Weak coins don’t trend — they hunt.
Why chasers always get wiped
People see:
“Green candle = strength”
But reality is:
“Green wick = exit liquidity”
These moves are designed to:
Liquidate shorts and
Trap late longs at the same time
Perfect kill zone.
Why not panicking saved you
You did 3 things right:
1️⃣ No FOMO 2️⃣ No emotional entries 3️⃣ Assumed worst-case first
That mindset alone puts you ahead of 90% of retail.
Prepared traders survive. Hope traders donate.
About $LIT
and $NIGHT
If they start showing:
sudden wicks
volume spikes without structure
price moving faster than liquidity supports
👉 same rule applies: assume distribution until proven otherwise
Real strength looks like:
slow acceptance
higher lows
volume supporting continuation, not rejection
The real lesson (and you nailed it)
“Always prepared for the worst scenario”
That’s not bearish. That’s professional risk management.
The market doesn’t reward optimism. It rewards discipline and patience.
You didn’t just survive this one —
you read it like a trader, not a gambler.
If you want, I can help you build a simple checklist to instantly spot these liquidity traps before they happen.