A crypto expert has dropped an information bomb on the crypto community, exposing Market Makers (MMs) for their alleged influence in cryptocurrency price movements. The analyst has unveiled a series of strategies investors can apply to take advantage of this supposed manipulation, highlighting ways to recognize tokens involved with market makers and how to profit from it.
Market Makers Manipulate Crypto Price Movements
A crypto analyst identified as ‘Rekt Fencer’ on X (formerly Twitter) has exposed different ways crypto market makers purportedly influence the prices of cryptocurrencies in the market.
For clarity, market makers are firms or individuals who facilitate cryptocurrency trades by providing liquidity to the market through buy and sell orders. The analyst highlighted that market makers play a critical role in Centralized Exchanges (CEX) and Decentralized Exchanges (DEX).
According to Rekt Fencer, market makers use all sorts of unique techniques to allegedly manipulate a token’s price. The crypto analyst revealed multiple strategies used by these liquidity providers to control a bull and bear market.
In the bull run, market makers supposedly influence token prices by allowing investors to buy as many tokens as they want. They also create a sense of Fear Of Missing Out (FOMO) among investors when they observe price charts that depict significant price increases.
Similarly, during bear markets, these liquidity providers acquire tokens at bottom prices to prepare for the next bull run. Additionally, they work towards generating an adequate amount of daily trading volume on CEXs to prevent a token from being delisted.
The crypto analyst shared distinct chart patterns for investors and traders to identify a market maker’s influence on token price movements. As an illustration, he cited the case of popular meme coin Floki (FLOKI), which had worked with DWLabs, a market maker, to allegedly push the token up by 772% in just three weeks.
How To Spot Tokens Working With Market Makers
According to Rekt Fencer, an investor can spot a cryptocurrency associated with a market maker if the token experiences significant price surges just before a major news hits. He also revealed that a consistently increasing trading volume without any big price changes was another major indicator. Additionally, repeated chart patterns such as frequent pumps and dumps would suggest market manipulation in a cryptocurrency.
The crypto expert disclosed that market makers tend to exploit the psychological tendencies of investors, particularly during prolonged market declines, instilling fear and triggering panic selling among token holders. A price rebound back to the normal range then follows these sell-offs, often indicative of a manipulative scheme.
Rekt Fencer has unveiled a strategy for investors and traders to exploit the alleged manipulative tactics employed by market makers. He suggests buying tokens during accumulation phases and selling them during distribution stages to potentially secure profits. Additionally, he provided a list of tokens currently in their accumulation phases, implying that investors could consider purchasing these tokens for possible returns.
Total market cap at $2.3 trillion | Source: Crypto total market cap on Tradingview.com
