Degen

It's common for cryptocurrency prices to experience a dump after a rapid pump. Here's why:

Reasons for Post-Pump Dumps

1. Profit-Taking: Investors who bought in early may sell their coins to realize profits, leading to a price drop.

2. Overbought Conditions: Rapid price increases can create overbought conditions, making a correction inevitable.

3. Lack of Fundamental Value: If the pump was driven by speculation rather than fundamental value, the price may not be sustainable.

4. Market Manipulation: Whales or market makers may intentionally pump the price to attract buyers, only to sell their coins at the peak, causing a dump.

5. Technical Analysis: Chart patterns, trend lines, and other technical indicators can influence investor decisions, leading to a sell-off.

Post-Pump Dump Patterns

1. Flash Crash: A rapid price drop often triggered by a large sell order or market volume 
2. Gradual Decline:
3. Dead Cat Bounce: A temporary price rebound after a dump, followed by another drop.

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