Having been involved in the Crypto Assets market for many years, I have come to deeply understand that many investors often mistake a dump for a Whipsaw, ultimately falling into the predicament of losing more as they try to replenish their positions. Recently, a follower asked me whether he should do Margin Replenishment when the coin price falls by 25%. From the Candlestick Chart, I immediately realized that he might have fallen into this trap again.

Taking the most recent token as an example, it started to pull back after rising from $3 to $7. Many people thought this was a good opportunity for a whipsaw and began margin replenishment, but the coin price fell all the way to $2. In fact, the signal for a dump had long been clear: first, while it was consolidating at $7, the trading volume suddenly surged fourfold, but the price remained unchanged, which was the large players dumping; second, it fell directly from $7 to $4 with no rebound in between, and orders were dense; finally, when it rebounded to $5, the trading volume was only one-third of what it was before, which was clearly a trap to lure in more buyers.

In contrast, the real whipsaw situation is quite different. For example, a project I was following previously saw its price drop from $5 to $3.5, with the trading volume continuously decreasing during the decline, while it surged with rapidly increasing volume during the rebound, and it never broke the key support level of $3. Subsequently, it directly rose to $9, and investors who entered the market following the whipsaw rhythm gained substantial profits.

To quickly distinguish between whipsaw and dump, remember the following three key signals:

1. Volume patterns: Whipsaw is characterized by "decrease in volume during falls, increase in volume during rises"; during a decline, selling pressure is minimal, while funds actively enter during rebounds; dumping is characterized by "increase in volume during falls, decrease in volume during rises"; during a decline, there is huge selling pressure, while buying pressure is scarce during rebounds.

2. Support Strength: Whipsaw will firmly hold key price levels, such as previous lows or important moving averages; dumping will directly break through support, not giving retail investors a chance to escape.

3. Price Rhythm: Whipsaw is usually a slow fall to wear down patience, followed by a rapid rise; dump is a quick fall to undermine confidence, followed by a weak rebound to induce buying.

The next time you encounter a significant fall in coin prices, first make judgments based on these three points and do not rush to Margin Replenishment. In the Crypto Assets market, accurately interpreting market signals is more important than making blind operations. After going through countless lessons and mastering these methods, I have truly learned how to avoid risks and found the "guiding light" for market operations.