AltcoinsAnalysisInvestment Ideas

Why ETC is Getting Crushed Before Airdrop

Analysis: ETCUSD
Position: Long

Let me start by talking about Swell by Ripple (XRP). It was one of the most anticipated events of 2017 and when the time came, XRP just kept falling like a stone before, during and even after the “Swell Conference” and most of us were surprised. Sure enough, some weeks later the price rose from $0.18 all the way up to $3.5 which also surprised most of us, needless to say. However, such tactics are not new. Big banks and institutional investors on Wall street and elsewhere have been doing this for a long time.

To quote a recent personal example, there is this stock called MOMO that I had been following for quite some time. It’s a great company, also undervalued like ETC so most people had their eyes on it. I myself opened a few small positions. A month later, the company announced terrific earnings! Everybody was suddenly talking about MOMO stock and how undervalued it was and what made it such a wonderful investment.

However, rather than seeing its price rise, we kept seeing 5% and 10% drops in the following days and most people were like what the hell is going on? If it’s such a good company why is it dropping even further? Well, here is the answer: If it is such a good company and now that the whales know that you think it is a good company, they want it even more. So, they will manipulate the price, scare off and shake out the weak hands so they can buy low. Sure enough, the same thing happened. The price fell like a stone for a few days and then starting rising 10%, 15% the next few days after the big guys bought. So, this is how it works.

Ethereum Classic Airdrop
Ethereum Classic Analysis (ETCUSD)

This is a fairly manipulated space and anything where institutional investors get involved becomes polluted this way. If you don’t like it, you can seek other opportunities but right now institutional investors are seriously considering Bitcoin (BTC) and Etheruem Classic (ETC) portfolios like Gold and Silver. They will try their best to shake weak hands and get your coins for a lower price. At the end of the day, it helps not to make investment decisions based on sudden whims but on well thought out plans and facts and figures.

If you like above article then Bloqtimes recommends below articles which might be of interest to our readers:

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This article is published with some updates and contributed by Fakhan

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Disclaimer: Cryptocurrencies investments are full of speculative and market risks. This article is only for information purposes and not an investment advice. Please conduct your own thorough research before investing.

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