Correct, which is why no one should try to trade those coins, it has been a known fact for a very long time that you cannot use technical analysis in small markets effectively and most honest books that you can read about trading will specify that pump and dumps are precisely the reason, in markets in which a single movement of a whale can move the market up or down technical analysis becomes meaningless and even if whales are powerful in the market of bitcoin they can be counted by other whales or retail investors.
You can still trade in the top 10 altcoins. At least their market cap is comparable among each other and higher than the shitcoins that go 400% gains overnight. But these are not the coins to hold on to for long term. They are supposed to go up and go down without warning, even in the middle of the night. Making all of them a much more risky asset to hold than what bitcoin has become.
Bitcoin may drop but we have confidence that it will go up again. We can say this for certain but can we do that for altcoins? No. We will be doubting that.
This is why the fear level in altcoin market is also high. It takes just a small cap whale to dump and make the rest of the retail investors go crazy with fear. Hence my suggestion to keep altcoins to a minimum.