Cardano is a great investment, but the clear price suppression on Bittrex is very frustrating


#1

If you watch the trading on bittrex, you’ll notice that right when the bulls start getting the price moving upwards again, there will be a massive sell order placed of 750,000-1,500,000 ADA at once (when typical orders are for 10-100,000). This causes the cascade effect of selling downward suppressing the price. Anyone who trades knows that if you want a better price placing a huge order is the worst thing you can do, so this is clearly price manipulation by large holders who are most likely accumulating the coins sold by the minnows. This type of activity is not conducive to true price discovery, but I suppose its to be expected in crypto. It’s just really frustrating to people trying to invest in Cardano to see the price continually pushed down when it should be moving up and ultimately this hurts the Cardano brand.

If you see this happen, just hold through it. If people refuse to take the bait and sell their coins at prices that are too low for their market value, then the market manipulation power of these large holders to suppress the price is reduced significantly (because people will just buy up their coins). When order books are thin, this is particularly true because it takes very little to swing the market down, and you’ll see very soon after the price drops that there will be a large buy order placed that sweeps up all the discounted coins pushing the price back to its equilibrium price, followed immediately by more price suppression by large orders.

I’ve seen this pattern play out time and time again on Cardano (and other coins), but I feel like Cardano investors are more savvy than the typical fomo traders and have the ability to help the community to not play into these games the whales like to play. We realistically would have jumped back up to $0.80 or higher by now if it weren’t for the cascading selloffs instigated by these large order sell walls.

If you see something, say something - you too can help stop market manipulation :wink:

EDIT: Point in case


#2

I am sorry friend - by imho - 100 btc order is nothing :nerd_face:

This is how the market works - i dont understand your post


#3

100 btc order of bitcoin is nothing… 100btc of a $0.60 cent asset is significant volume when the large orders are typically only 100,000 ADA or so. The point I’m making is not to sell in front of these sell walls, because that triggers a cascade effect and ultimately harms the valuation of the coin, resulting in a stagnant price which turns off investors and harms the project as a whole.

I post this just as a PSA informing people of what is happening so that they don’t get suckered out of their coins right before the sell wall order is canceled and the market shoots back up again. I’ve also seen a combo play where a large order is placed, and then numerous sequential small orders (under 100 coins) at incrementally lower values are entered rapidly which gives the appearance of a dramatic market downturn, which causes panic selling or triggers stop losses resulting in a cascade effect (definitely illegal in normal markets). I didn’t see that with this particular order, thankfully, but it is also something that is common on bittrex (and in crypto generally).

I did notice that that order disappeared with 400,000 left to sell, and a new order for approximately 2.2 million cardano appeared on the buy side right after… the timing is certainly interesting. Seems like the effort to drive the price lower failed, so they’re buying back all the coins they sold. rinse and repeat I suppose. lol.

EDIT: Speak of the devil - sequentially lower price suppression at work - notice the number of 1000.00 ADA sells at 1 satoshi lower prices… designed to keep the price moving lower… then a big sell wall goes up of 2.5 million coins stalling recovery, and the buyer picks up the discounted coins as people try to exit before what they perceive as a natural market move downward. Classic market manipulation.


#4

Sorry dear Adafans_io, but this is not how a legitimate market works. In fact, what TenaciousJ has astutely observed is a classic “Bear Raid,” which is a form of market manipulation. If this were the NYSE/NASDAQ/CME/etc., this would be classified as securities fraud from the perspective of the SEC and CFTC.

I really appreciate your work here TenaciousJ. I think it’s so important that our community sees these scams for what they are. Knowing the truth will give them the discipline and emotional equilibrium to avoid the panic selling that illegitimately depresses our beloved ADA.


#5

I have seen this and any other kind of shady moves since 2010. It’s more obvious/rustic when the volume is low, but we still have a lot of market manipulation with Bitcoin. Unfortunately this is very common, and probably the best you can do is to understand that we are basically trading in the wild west…

If @TenaciousJ lives in the US and got personally affected by this, and since Bittrex is an US-based company that have to comply with KYC/AML/etc., then I think you could report this behavior to the SEC, although it may be hard to prove and it’s not that much money anyways.


#6

No, what causes the cascading effect of selling is other people (sheeple?) CHOICE - which could have gone either way. They are not selling because Cardano’s intrinsic value - given by its vision, purpose, roadmap, prior accomplishments, etc. has been reduced.

Sheeple don’t follow logic, they follow fear when making decisions. While we shouldn’t turn anyone away if they want to buy Ada, if you’re going to make statements like “event X caused Y”, e.g. “large Ada holder caused massive selloff of Ada”, I would not concern myself with it, meaning, I would hold my stake, unless you got wind that someone from Cardano’s board of directors was embezzling money, paying for prostitutes with the foundation’s money, buying 200" screens for his office to watch the ticker price of Cardano go up or down, or some other ethical violation, then please come here and tell us…

Then I might be thinking about selling to cut my losses if it isn’t too late, unless they clean out that trash from the company real fast too.

I believe the price will move up in spurts of growth while reaching new sustained heights, and it will probably be timed around delivery points and announcements of adoption of Ada by institutions, companies, governments, a.k.a. ‘the people’.

E.g. height breakthrough #1 - easy fiat<->Ada conversion via something like Coinbase, which I use and lets me hook up my US based checking account to buy ETH/BTC/BCH/LTC. I bought some Ada this way, but by routing to Binance first, then acquiring Ada. An extra step which should not exist, IMHO. Once people can get Ada via their checking accounts on one or more US-based exchanges (or similar in any other developed/banked country worldwide), Ada will reach a new height and it will likely stay there.

E.g. height breakthrough #2 - when Amazon, PayPal, etc announce they will accept Ada as means of payment - and I see no reason why they shouldn’t unless they are stupid - and they are not, another new height breakthrough/plateau will be reached and likely sustained.

The roadmap milestones will certainly also give bumps, however, the real upward swings will happen only via adoption of Ada in the regular course of business worldwide.


#7

This is common in all cryptos. Thats why the market, as a whole, has been fluctuating up / down so much lately. Welcome to the unregulated world of cryptocurrency. Just as in fiat the wealthy have the control.


#8

I guess if your trading in crypto or are ready to now profit from a low buy in, then this manipulation is a bad thing, I don’t think it affects the project or development one bit, and personally I hope to be able to buy at a low price for as long as possible, if the price of ADA moves up too much too soon than my stake wont have as much value in the years to come, some of us are hoping the price remains low for a bit, just my two cents…


#9

the price moving down is a good thing… it allows us to buy more while its still cheap.


#10

This is what happens if markets/exchanges are mainly unregulated - trade washing is illegal only if that market is regulated.


#11

A workaround am comfortable with is to put ADA into InvestHold category and actively trade other pairs. I dunno about you, my friends, but I always feel like my wires are crossed (emotion gets in the way) whenever I wanto/try to actively trade something short term that I also want to keep long term.
Great points! I’m thankful for your insights. Good tone on here.


#12

@magnetar Unhealthy concentrations of wealth and power is the sad reality of our world today and throughout most of human history, but if everything goes as planned with Cardano, the stake delegation process will re-balance the wealth/power distribution between the whales and the minnows.

Another way of looking at it: A single tiny leech in a big pond is harmless to humans, but a bucket full of leeches can suck all the blood out of a human body in ~5 minutes. Little things can be very powerful in large quantities. Likewise, the stake delegation process will enable all the minnows to band together and collectively have much more power than any single whale.

In fact, this is the essence of delegative democracy, which I’ve always wished we had within our political system. When I saw that Cardano has delegative democracy embedded within the blockchain, it was ADA-love at first sight.


#13

Im Just Newbie, just got into crypto last year and it really puzzled me why is the price is not soaring considering the volumes it got… And notice that there must be some Price manipulation happening here, or a trading BOT pulling and pushing the price at the whales whims…
This is more obvious also in Binance with TRON (not promoting it IM A caRdano hoDLER =)
Just to emphasize that its happening in the crypto. as if paralyzing the growth …

Thank you for this topic great content here…


#14

Check speculation on future outcomes in Crypto here Alt coin Updates