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Market manipulation is too easy with small cap

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by COINS NEWS 105 Views

Up for discussion:

Is market manipulation too easy for small/micro cap crypto? Like Solana tokens?

I asked because I've traded large caps, and medium caps regularly. Using traditional charts, patterns, and behavior recognition, you could typically make good predictions on how the market will go. With that said, yes there's still market manipulation involved in large, and medium caps, but due to the sheer volume of traders, market manipulators have to use specific methods to move prices.

But when it comes to small and micro caps, market manipulators can zoom in on the individual, move the price, and empty the coffers of larger investors.

For example, you accumulate a large holding of a certain token. On the 5-minute chart it shows all the buys and sells, most small caps have five to maybe 50 transactions happening at one time, along with the wallet data in a list of purchases.

With just a click you can go to the person's wallet and see exactly how many tokens they hold, and if that person stands to cash out in a big way, market manipulators can take the price lower the value and force the person out of their position.

This leaves the only people who truly benefit from small cap crypto being the token creators, or early whales. Of course every once in awhile someone will tell a story about how they made millions out of $100, which is probably a lure to entice the inexperienced crypto investors.

Now I do have some experience, and I've watched several times as a token is being dumped, where as soon as I hit my stop loss, the price immediately rebounds. When looking at the transactions on the 5-minute charts there are only 8-15 transactions happening. This lets me know that it's a group collectively acting on the price movement, and will force a sell-off if you are too savvy and collect too many tokens.

This is just my opinion, tell me what you think.

submitted by /u/leme-thnkboutit
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