Detecting Price Anomalies
Pump and dump patterns are far more common in crypto than traditional finance due to low liquidity, 24/7 markets, and fragmented regulation.
How They Work
- Accumulation — Coordinated buyers quietly build positions
- Pump — Rapid buying creates a price spike attracting FOMO buyers
- Distribution — Orchestrators sell into the buying wave
- Dump — Price collapses as selling overwhelms demand
Detection Methods
Effective detection monitors price changes across multiple windows:
- 5-minute — Catches rapid micro-pumps from bots or breaking news
- 15-minute — Identifies sustained momentum from coordinated activity
- 60-minute — Reveals larger campaigns that build over time
How Monitoring Helps
- Avoid manipulation traps — Recognize manufactured spikes before entering
- Risk management — Understanding active manipulation changes position sizing
- Market health — High pump/dump frequency signals poor liquidity
The StratBase.ai Pump/Dump Screener provides real-time detection from Binance and Bybit with multi-window analysis and Telegram alerts.
