Dead Cat Bounce

By: WEEX|2024/10/25 16:26:19
0
Share
copy

A "Dead Cat Bounce" is a term used in financial markets, including cryptocurrency trading, to describe a temporary recovery in the price of an asset during a prolonged downtrend. This short-lived rebound gives the appearance that the asset's price is recovering, but the upward movement is followed by a continuation of the downward trend. The phrase originates from the idea that even a dead cat will bounce if it falls from a great height. In the context of crypto, traders may interpret a dead cat bounce as a false signal of a market reversal, leading them to buy into the asset prematurely. However, when the asset continues its downward trend, these traders may face losses. Identifying a dead cat bounce requires careful analysis of market trends and indicators to avoid mistaking a temporary recovery for a genuine reversal. A dead cat bounce is often observed in highly volatile markets, such as cryptocurrency, where sudden price movements can deceive traders.

You may also like

What is Percolator SOV (PERC) Coin?

Exciting news for crypto enthusiasts: Percolator SOV (PERC) is now available for trading on WEEX, starting February 8,…

PERC USDT Now Live on WEEX: Percolator SOV (PERC) Coin Listing

WEEX Exchange is thrilled to announce the listing of Percolator SOV (PERC) coin, bringing fresh opportunities for crypto…

Percolator SOV (PERC) Coin Price Prediction & Forecasts for February 2026: Surging After Solana Launch?

The Percolator SOV (PERC) token just hit the scene today, February 8, 2026, emerging from a tweet by…

Introducing MYX.Finance: Complete Guide to $MYX and Airdrop Opportunities

MYX Finance is a non-custodial derivatives exchange that allows on-chain trading of perpetual contracts for virtually any token with an existing AMM liquidity pool.The protocol was designed to significantly reduce the capital requirements for liquidity providers, eliminate network-related obstacles for traders, and simplify the overall trading experience—making sophisticated derivatives trading as straightforward and accessible as executing a simple spot swap. Learn its tokenomics, ecosystem impact, and how to claim free tokens in the WEEX $50,000 MYX.Finance airdrop before Feb.13, 2026!

What is Crude Oil (CRUDEOIL) Coin?

We are excited to announce the new listing of the Crude Oil (CRUDEOIL) token trading pairs on WEEX,…

WEEX Debuts CRUDEOIL USDT Pair: Crude Oil (CRUDEOIL) Listed

WEEX Exchange is excited to introduce the CRUDEOIL/USDT spot trading pair, bringing Crude Oil (CRUDEOIL) to our platform…

Popular coins