Accumulation Phase: Skillful Layout, Waiting for the Right Moment

During the accumulation phase, market makers (whales) typically use various methods, such as suppressing positions, building positions through sideways trading, or pumping positions to build positions. Through careful planning, they create panic or lure retail investors into handing over cheap lots, so they can accumulate a sufficient base of tokens. In this stage, the market makers patiently wait for the moment; once the market shows a turnaround, they quickly move in.

Market Sweep Phase: Clear Out Floating Inventory, Prepare for the Rally

The market sweep is an important part of a market maker’s price-control process. By controlling the sweep range or conducting a range-bound shakeout, they make coin holders develop fear, which in turn leads them to sell the tokens they hold. This allows the market makers to easily shake off the follow-the-crowd orders and make thorough preparations for the subsequent rally phase.

Rally Phase: Full Throttle, Frenzied Pumping

After completing the accumulation and market sweep phases, the market makers enter the most exciting rally phase. Relying on strong capital strength and refined trading skills, they rapidly push up the coin price, prompting retail investors to chase the price and buy. At this time, market sentiment is intense; retail investors rush into the market one after another, driving the coin price to keep rising. Meanwhile, the market makers take the opportunity to profit handsomely.

Distribution Phase: Distribute at High Levels, Skillfully Withdraw

When the coin price rises to a certain extent, the market makers begin to consider distribution. They usually choose to distribute their tokens at high levels, letting retail investors take over. In this stage, the market makers use a variety of tactics to lure retail investors into buying, such as fabricating market rumors, accelerating the rise while accompanied by large-scale volatility, and so on. Once retail investors buy in one after another, the market makers quickly exit the market, leaving retail investors to face market risks on their own.