The Complete Manipulating an Old Token's Price by Market Makers You can apply this analysis to similar projects. Identifying the Market Maker's strategy can open significant opportunities. The price manipulation by MM involves four very clear stages with the following characteristics:

1. Accumulation

• Select projects that the market is disillusioned with, losing faith due to a lack of updates, or even presumed to be inactive.

• Choose projects abandoned by former users, who have discarded their tokens, now considered worthless.

• MMs start accumulating all the tokens that former users have "thrown away".

  
  

2. Initial Pump

Holding most of the project's tokens (not limited to one project), MMs will:

• Wait for the market to receive very positive news about the project before starting to make a move.

• Begin testing the crowd psychology 1-2 times to see how the market reacts.

• The last holders from the previous cycle, seeing the price increase 2-3 times, will likely sell immediately to take profits and exit the project.

  
  

3. Real Pump

The goal of this stage is to make the entire market see:

• The project/MM is seriously pumping, continuously driving up the price.

• A sudden increase in trading volume, from a few million to tens or even hundreds of millions per day.

• The project continuously updating information, partnering with many entities, aiming to show a revival, hence the price increase.

• Only groups dedicated to shilling and new traders influenced by media reports rush in.

• The price may be pushed up several times or even dozens of times, depending on the price driving team's strategy and the actual FOMO of the crowd.

  
  

4. Dumping (Real Dump)

• Dump according to technical analysis because the crowd believes in technical analysis and jumps in on FOMO.

• Old holders, hearing the news, will return and buy in, hoping to recover losses, with the mindset "it will reach its previous peak soon," but often the reality that follows is disappointing.

  
  

Conclusion

In conclusion, the analysis of Market Makers' (MMs) strategies in token price manipulation reveals a calculated, four-stage process: accumulation of undervalued tokens, an initial pump testing market reactions, a real pump marked by significant price increases and trading volumes, and finally, a strategic dump exploiting technical analysis trends. This insight into MMs' tactics underscores the importance of being aware of manipulation tactics in the crypto market, offering both an opportunity for informed trading strategies and a caution against the risks inherent in such volatile market dynamics.