Something unusual occurred in the cryptocurrency market. While many altcoins declined, Onyxcoin (XCN) and the Trump token experienced significant price increases seemingly without explanation. No news or announcements preceded these sudden spikes, leaving traders puzzled.

So, what's happening?

Crypto expert Gerhard from Bitcoin Strategy, with over 136,000 subscribers, offers a detailed explanation in a recent video. He argues these price movements aren't driven by retail hype or short-term speculation, but rather by market makers.

What's Behind the Sudden Spike?

Gerhard describes the XCN and Trump token price surges as classic market maker maneuvers: short squeezes engineered in the perpetual futures market. While the broader altcoin market was down, these two tokens rallied sharply. He highlights a common pattern in crypto: rapid price increases followed by slower declines. These pumps often lack any underlying news or utility.

XCN made no announcements, and the Trump token released no roadmap, yet prices soared. This is because market makers profit when many traders are shorting; they drive the price up, liquidating those short positions and collecting fees.

Onyxcoin (XCN): The Derivatives Market Story

Focusing solely on the XCN spot price chart may miss the bigger picture. Gerhard demonstrates how open interest on XCN perpetual futures contracts moved in tandem with the price. As more traders, particularly those with short positions, entered the market, the price increased—a strong indication of market manipulation.

This isn't unique to XCN. Similar patterns have been observed with Dogecoin and the Trump token. The pattern is typically a sharp squeeze, a gradual decline, potentially a secondary pump, and finally, a significant drop. Once fear of shorting subsides, some traders see an opportune entry point.

Gerhard emphasizes that while retail traders often get caught in the volatility, a clear strategy underlies these market maker actions. Understanding how market makers operate is crucial. For instance, comparing XCN's performance against Bitcoin, rather than the US dollar, reveals a more accurate picture. The rapid increases followed by slow corrections become clearer when Bitcoin's overall market influence is removed from the analysis.

He also explains how his community identifies secondary squeezes as lower-risk short entry points, as most early short sellers have already been liquidated by this stage. To gauge the future XCN price, monitor open interest and look for sharp price movements. Avoid reacting to every pump; often, the second wave reveals the true market trend.