Expert Tips: The Difference Between "Clearing Stock" and "Selling Off" – Understand Correctly to Avoid Losing 80% of Your Account

The market doesn’t care who you are, nor does it care whether you have “trust” or not. The only thing the market responds to is your behavior in front of price and capital flow. Many people suffer heavy losses in crypto not because they choose the wrong projects, but because they misread market signals – especially confusing between shaking out and dumping. Last week, a brother messaged me at midnight: “Hey, this one dropped nearly 30% in two days, I plan to buy more to lower my cost basis, is that okay?” Just opening the chart and looking for a few minutes, I felt a chill down my spine. This isn’t shaking out, but very clear dumping. Unfortunately, he still entered the trade. Less than half a day later, his account continued to evaporate by nearly half. In this situation, in 8 years of market experience, I’ve seen countless times. Today, I will break down this issue with simple language – practical – no empty theories, so you can correctly identify and avoid “deadly” traps. Shaking Out vs. Dumping – Looks Similar, But Fundamentally Opposite What is Shaking Out? Shaking out is a deliberate action by whales to: Eliminate weak-minded investorsCreate a feeling of “end of wave,” “trend break”Accumulating more at low pricesPreparing for a new rally Simply put: they don’t want to jump on the train yet. What is Dumping? Dumping is the stage where whales have eaten enough, and start: Gradually selling or heavily selling their holdingsPushing the asset to FOMO buyers, “bottom fishers”Preparing to exit the game Straightforward: they are looking for replacements. Core Differences 👉 Shaking out: Main players want to stay or buy more 👉 Dumping: Main players want to exit as soon as possible Understanding this intent, you are ahead of most of the market. How to Recognize Shaking Out or Dumping – Look for 4 Survival Signs

1. Trading Volume Never Lies Shaking out:Price drops but volume remains highConstant turnoverWhales quietly buyingDumping:Initial phase with high volumeThen gradually decreasing, shrinkingNo more buying power to support the price Real example: Shaking out: price drops 30% but turnover rate always above 15–20%Dumping: turnover from 20% → 10% → 5%, decreasing continuously for many days 👉 Price decline + exhausted liquidity = very dangerous
2. The (Moving Average) Path Is the “Lifeline” of the Trend In crypto, MA20( is equivalent to medium-term cost) and extremely important. Shaking out:Price may break through MA20But quickly rebounds within 3–5 daysMA20 still trending upwardDumping:Price stays below MA20 for a long timeMA20 turns downwardEvery rebound is sold down 👉 When MA20 turns, don’t fool yourself into thinking it’s shaking out.
3. Price Behavior: Slow – Fast Tells Many Things Shaking out:Gradual declineRapid reboundStrong candles, decisive Dumping:Very fast declineWeak recoveryLong red candles, short green candles 👉 “Fast drop – weak rebound” is often a sign of exit, not a scare tactic.
4. News Is Just a Side Note, Capital Flow Is the Main In crypto: 80% of bad news during shaking out is fabricated, exaggeratedIf bad news appears but:Volume remains highPrice doesn’t break key support → Usually just psychological tricks Conversely: Bad news + price breaks support + liquidity dries up → Run before it’s too late Real Case: An Exemplary Dump I once tracked a token: Rose from 2U to 5UAt the peak:Volume increased many timesPrice didn’t go higherDivergence started to appear Then: Price fell from 5U to 3U with no significant reboundEach rebound with low volumeMany still try to “catch the bottom” 👉 That’s dumping, not shaking out. Conversely, with another project I analyzed: Controlled declineHolding support levelsSmall volume during decline, large volume during rebounds 👉 That’s true shaking out. 3 Survival Rules for Individual Investors
5. Don’t Look at Candles, Look at “Cost Price” If: Price is still above the main whale’s costMA20 not fully broken → No need to panic
6. Ignore Rumors, Follow Capital Flow News can deceive you. Money does not.
7. Limit Playing Over-Controlled Coins Small-cap coins: Rise very fastBut when dumping:Drop sharplyNo liquidity to run 👉 Prioritize coins: Good liquidityLarge market capReal capital flow Conclusion Crypto is not a game of luck. It’s a game of perception and discipline. You don’t need to follow whales. You just need to understand what they are doing. I also paid a lot of “tuition” in the early years. But those setbacks helped me read the language behind the candles.