Reasons Why Cryptocurrencies Can Increase Tenfold in Just a Few Days | The Five Dynamics Behind the Charts

“Why did only that coin surge?” — This is the most frequently asked question in the crypto market. In fact, the sudden price rise is not completely random; there are several underlying rules.

1. The “Flaming Marketing Effect” of SNS is the strongest

A single tweet on Twitter can move a market worth hundreds of millions of dollars. With just one word from a celebrity, millions of novice investors place buy orders all at once.

Dogecoin is a typical example: the joke coin DOGE surged in a few days due to FOMO (fear of missing out) after Mr. Musk's tweet.

The mechanism is simple:

• Influencers create topics.
• Beginners fear missing out and buy.
• Demand > Supply → Price rises

2. The Intentional Schemes of “Whales”

Large holders (whales) know how to manipulate the market.

Typical scenario:

1. Whales make large purchases to increase trading volume.
2. Small investors rush in misunderstanding that “something is happening”
3. Sell at the peak → Market crash

This is a planned pump and dump.

3. Listing on major exchanges = signal

When an unnamed project is listed on Binance or Coinbase, it automatically attracts hundreds of millions in funding.

For some reason:

• Tens of millions of users will suddenly become accessible.
• The misunderstanding that “being chosen by a major exchange = being reliable”

Shiba Inu (SHIB) recorded a rise of several hundred percent just a few days after being listed on Binance.

4. The project's “true technological advancement”

Not all surges are pumps. Real projects also rise.

Triggering news:

• Addition of smart contract functionality
• Announcement of partnership with large corporations
• Major update of the blockchain

After major updates to Ethereum (such as The Merge), the price of ETH will fluctuate significantly. This is an example of how technological advancements directly correlate with market valuation.

5. Ride the wave of the overall market bull run.

During the BTC surge period in 2021, even low-quality “junk tokens” rose together. When the entire market is in buy mode, questions about individual tokens take a back seat.

The smaller the market capitalization, the more susceptible it is to market sentiment.

Surge Prediction | Check 4 Signals

1. Abnormal Trading Volume The trading volume has tripled for no reason? → There is a possibility that whales are moving.

2. Trending on SNS At the stage when it has risen to trending, early-stage buyers are already aiming to secure profits.

3. Newsletter Track partnership announcements, listing predictions, technical updates, and more. This information precedes price movements.

4. Technical Analysis Check the overheating level with Bollinger Bands and RSI. If it exceeds 100, it's a warning signal.

Finally

The surge in cryptocurrency occurs when the three factors of “market sentiment × news × large investors' movements” align.

However, this is important: after a surge, there will always be a sharp decline. Statistically speaking, it is very difficult to continue making profits in short-term trading. It is essential to remain calm and participate with an amount of money that you can afford to lose.

The feeling that “this coin will definitely come” is the most dangerous. The market is always cold.