For those who follow Alpha coins, they know that they rise very quickly... but at the same speed, they drop harshly 🚀💥
The reason? Simple: weak liquidity. The same thing that makes them soar during pumping makes them collapse when the market cools down. As soon as the buying pressure eases, there is no one to support the price, and a sharp decline begins.
Whales and early investors get in early, pump, and when prices reach resistance areas or psychological targets, they start to distribute. Selling drops suddenly, and liquidity can't handle it, causing the price to collapse quickly.
The problem worsens with the entry of latecomers who chase FOMO 😵💫, and as soon as the correction begins, greed turns into panic. Stop-loss triggers, and everyone sells, turning the red candle into a waterfall of descent.
Also, many of these coins have no real demand, just temporary noise. As soon as the trend cools or the buzz disappears, no one is left to buy. Without new demand, gravity takes over 🪂
And let's not forget about leverage. Many use it in Alpha coins for quick trades. But when the momentum breaks, leveraged positions collapse, leading to increased forced selling.
And if Bitcoin itself starts to weaken, risk appetite disappears, and everyone returns to safe assets. The result? Small coins are exposed, and the decline becomes faster and harsher.
RVV$
$GIGGLE $KO
#AlphaCoins #CryptoVolatility #RiskManagement #FOMOTrading #AltcoinCrash