Low liquidity is one of the causes, when a coin or token does not have enough liquidity to execute small or large trades at a go, as little as $10 usd buy or sell on that coin or token impacts greatly on the price like +10% or -10% depending on whether the person who traded either bought or sold, there are several of this type of coins in the market today and this usually happens with coins listed on very small or small exchange which their user base are not much and as a result, liquidity is very low on those exchanges.
That might be a valid reason for unknown coins but I wonder why and how Bitcoin, which has an enormous market cap, moves so much without any particular reason. There is literally price going up and down all day and surely there isn't something happening all the time.
No matter how much we hide from it or run away from it, there are manipulators still in the market with a capital big enough to disrupt and shake the market at will.
No logical explanation can be given for the dump that happened last year, in March-April. Pandemic only helped Bitcoin for those who put the blame on the pandemic.
Of course there are lots of people who had been actively trading specially its a main coin or father of all crypto.It is just normal that you would see that kind of liquidity despite on having no news that you could see into the market.
When it comes to small coins then having low liquidity then those 10-20% would really be just small for someone to move those percentages specially if its really cheap then buying would really give out some impact.
You could really eventually tell on seeing into its volume alone and as a trader or investor then you should know at least on how to check out these things.
Dont know if someone do really still risking their money into low caps.