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
EDIT: Point in case