Quote from: caffu chino on Today at 06:32:31 AM

some time ago I bought an altcoin which has a low marketcap and trading volume. I bought after analyzing using technical indicators. After a while I realized something was wrong. it should be if based on my analysis the coin I bought has entered an oversold period and the price should have started to reverse. but in fact it never happened. the price may go up, but it doesn't last long and it goes back down. then I also bought another altcoin which is almost the same. and again, I also experienced the same thing even though in the end I got profit thanks to long-term hold.

Then I started thinking and wondering, why is it difficult to apply technical analysis to coins with low market caps. unlike bitcoin and other major altcoins whose movements are still predictable. Altcoins with low market caps are difficult and even impossible to predict. whether this is all related to manipulation or there are other reasons that make it difficult to predict.

The answer to this question is rather simple. We can use Technical analysis when we work with mainstream currencies or any assets that are popular and wide-spread as there are many traders around the world who see the same patterns and indicators and take the same steps, as a result, the market adjust to their actions and change the trend. But there is a low liquidity in low market cap coins, so nobody pump or dump price according to TA.

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