What a rug looks like afterwards
A vertical drop to near zero, with no recovery
What it is
When the liquidity behind a token is withdrawn, the chart drops in a single move to near zero and stays there. On the chart it is one vertical line and a flat floor.
What it may suggest
Only what already happened. Read as history it is unmistakable, and it is worth being able to recognize so a chart like it is never mistaken for an ordinary decline.
Where it fails
It is not predictable from the chart, and anything claiming otherwise is guessing. What precedes a rug looks like an ordinary token. Whether supply is locked, who holds it, and whether liquidity can be pulled are facts about a contract, not shapes in a price series. ChartPeak will not comment on them from a photograph, and neither should any chart tool.
Also called rug pull, liquidity pull.
More meme coins
- Why most of these are no tradeThe honest answer to a young chart is usually nothing
- Market cap chartThe axis is total value, not the price of one token
- Not enough chartToo little price has printed to read anything from
- Launch spikeA near-vertical first move, then a long fade
- Pool liquidityHow much can be sold before the price moves against you
ChartPeak is an educational tool. It is not financial advice and does not make investment recommendations. Trading carries a risk of loss, and past performance does not indicate future results. Do your own research.
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