$LAYER Main reasons for the collapse of LAYER
1. Token Unlock and increased supply: LAYER experienced a token unlock for a large number of tokens, leading to an increase in market supply. This sudden expansion in supply may have prompted some whales (large investors) to sell large amounts of tokens, negatively affecting the price.$LAYER
LAYER
1.7162
-42.41%
2. Unbalanced distribution structure: Only about 21% of the total supply of LAYER is currently in circulation, while the rest remains locked. This means that a few whales control a large portion of the tokens, making the market susceptible to significant volatility when they sell.
3. Unusual trading activity and pressure in the futures markets: Intensive selling activity and pressure in the perpetual markets have been observed, indicating the possibility of coordinated selling or exits by large market players.
4. Weakness in technical indicators: Technical indicators show weakness in buying momentum, as the Relative Strength Index (RSI) has dropped to 45, and the MACD indicator has turned negative, with a decrease in trading volume during the rises, indicating a lack of confidence among buyers.
Is there a chance for recovery?
Despite the sharp decline, some analyses indicate that the current price is close to the lowest point in 24 hours, which may lead to a short-term rebound. However, the overall market sentiment leans towards greed, which could lead to additional volatility.
Advice for investors
Due to the high volatility and current instability in the price of LAYER, investors are advised to exercise caution and monitor the market closely before making any investment decisions. It may be wise to wait for price stabilization and the emergence of positive technical signals before entering into any new trades.
