Now this was my question before... Yeah have seen this a few times on other altcoins is this some kind of bug or manipulation?
I'm not familiar with how the market works like this so it's a bit ambiguous for me, maybe someone can enlighten me in detail so I know the reason behind it.
Sometimes btc is sold at a very low price from the normal market price? Is that someone doing that?
Topic: Why does such a sudden price spike happen? - page 2. (Read 273 times)
As you guys know, there was a Matic token swap to Polygon on Binance and other exchanges. Yesterday, Polygon got listed again on Binance but there was a sudden, unusual behavior. Matic's price was nearly 0.39 USD and someone paid up to 1 USD per token and then the price went down to normal price again.
This isn't something new of course, I have seen it many times but I don't really understand why such spikes happen. Why would someone pay $1 on Matic when he or she could buy tons of it for only $0.39?
This isn't something new of course, I have seen it many times but I don't really understand why such spikes happen. Why would someone pay $1 on Matic when he or she could buy tons of it for only $0.39?
Hmm, this is not one of the rare events it's quite usual, whenever a coin gets listed a battle between the buyers and sellers gets started due to high volume and liquidity, sot hat the reason such huge spikes appear, in more than 90% of coins you can see such spikes and even in more.
If it is only concerned with spikes, not with the initial ones there can be several reasons, Platform Manipulation, Whale activity, short-term squeezing, and Events boost. But all of this happens with the change in volume and liquidity of any particular coin.
This isn't something new of course, I have seen it many times but I don't really understand why such spikes happen. Why would someone pay $1 on Matic when he or she could buy tons of it for only $0.39?
This is not new and I only surprised that why you waited a long time to ask this question.My answer can be wrong, but correct me if anyone feels it is wrong. This dumping candle can be explained like at the start of trading, of this trading pair, the company team sets up that sell order, and self-fills it by their small buy order. The order size can be small like a minimal amount on Binance, I remember it is $10. Then they let it has a free fall to lower price range, it is easy.
I don't know about Binance, but on other exchanges (smaller than Binance), when you want to list your coin on their exchanges, you will need to have fund requires for liquidity: the token and a stable coin, if the trading pair for listing is token / stable coin. You know with this available token and stable coin, the project team can do such fake candle easily.
Matic's price was nearly 0.39 USD and someone paid up to 1 USD per token and then the price went down to normal price again.
This isn't something new of course, I have seen it many times but I don't really understand why such spikes happen. Why would someone pay $1 on Matic when he or she could buy tons of it for only $0.39?
Your chart is 15 minutes chart. I want to use 1 second chart but it was difficult for me to scroll back to the beginning of the chart. So I use 1 minute chart. If you use 1 second chart, you will still notice something similar that it would be done in a way that no one will neither gain nor lose. This isn't something new of course, I have seen it many times but I don't really understand why such spikes happen. Why would someone pay $1 on Matic when he or she could buy tons of it for only $0.39?
That price increase will occur at the start of trading and it is fake than what the exchanges let you see. Nobody will be able to buy and sell at that high price.
This isn't something new of course, I have seen it many times but I don't really understand why such spikes happen. Why would someone pay $1 on Matic when he or she could buy tons of it for only $0.39?
Short answer due to the thin liquidity on the orderbook.
This kind of price fluctuations occur if a huge market order was initiate while the orderbook doesn't have enough liquidity to absorb it. This cause a temporary price fluctuations that later on correct since the market maker will fill again order on the orderbook to correct the price.
This is common on tokens that has a surge volume of buyers that want to guy first or some deep pocket trader use market order in panic while they use a huge capital.
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Why would someone pay $1 on Matic when he or she could buy tons of it for only $0.39?
This is not actually the first time that this kind of trades is taking place, it usually happen especially on binance exchange as I have observed it a few times. As of last year, there was also a spike in the price of Bitcoin where some sold for a very high price (more than 30%) of the current price, I believe it's the buyer that makes such mistake by setting a buy order at a high price and if there's also a seller's order that match that of the buyer, it's going to execute. Just uncommon mistakes that few people make at time.
As you guys know, there was a Matic token swap to Polygon on Binance and other exchanges. Yesterday, Polygon got listed again on Binance but there was a sudden, unusual behavior. Matic's price was nearly 0.39 USD and someone paid up to 1 USD per token and then the price went down to normal price again.
This isn't something new of course, I have seen it many times but I don't really understand why such spikes happen. Why would someone pay $1 on Matic when he or she could buy tons of it for only $0.39?
Click on image to zoom
This isn't something new of course, I have seen it many times but I don't really understand why such spikes happen. Why would someone pay $1 on Matic when he or she could buy tons of it for only $0.39?
Click on image to zoom
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