Fear Of Missing Out can trip up the best investor if they let the emotions of the market sway them. Although this is one of the major ways they establish new supports, you don't want to be the one caught in the trap. It is our belief that Federal Banks pump the market, causing coins to rise unexpectedly thus triggering people to buy due to fear on missing the climb in price and making a profit. Though the savvy investor can ride the wave and make gains, many people get left holding the bag.
Lets take XRP for an example. Scarab Investment Team on April 11th posted that XRP was being pumped and would fall "I'm still hoping for it to drop to 1.00 but thats the new price range 1.30" said Patrick Brown. Keith Fleming confirmed this analysis by saying "More so the new support and resistance levels are .80-1.30".
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Members of the team didn't buy XRP on its run up, however we did fall for a classic move on the back end. To illustrate this example we will take a common tactic done in retail marketing. If you were out to purchase a coffee that had two options, small (4oz) and large (6oz), varying in price of $3 and $6, you would probably buy the small due to the price difference. What if they added a medium (5oz) that was $5.50? Shoppers would likely then buy the large due to it only being $.50 more than the medium. Great value right?
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Retail stores offer the third option of a medium that may vary between 5-10% less to give the illusion of the large being a great deal. When we see Medium we think Middle, and in our example, the actual middle cost would be $4.50. Stores mark it up to trick the mind into thinking that if every ounce is a $2.50 mark up, getting a large for $6.00 is great. When in reality, 4oz of coffee cost $3.00 and if you bought two smalls you would have had 8oz of coffee for the same price as the large at $6.00.
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XRP jumped from $.60 to $1.89 in a matter of 9 curves(days) creating a large gap for price correction. With such a large gap happening in three major price points, we became uncertain how far up the hype would take the price thus abandoning our original buying position of $1.30 or lower. Through manipulation the Feds made the $1.50 price range as the medium. With the price looking like a $2.00 pump could happen, it made $1.50 seem like a great buy when the actual retail price is $1.30. Fortunately being a HODLer, all losses are impermanent. Crypto as a New Asset Class has been making gains in price since it's inception. Forcing mass adoption and inducing billions around the world to participate concurrently in the Fourth Industrial Revolution. If Crypto buys you a piece of the new world, we encourage everyone to buy them a Corner of it...and HODL.
