here is your answer why is LAYER collapse..
price of Solayer (LAYER) coin dropped sharply mainly due to a combination of factors:
A large token unlock event released over 27 million tokens (about 13% of total supply) to the foundation, triggering increased token inflation and supply pressure1. This cliff unlock started a linear vesting schedule releasing more tokens every three months until 2030, adding to selling pressure.
Whale activity played a key role, with a significant holder unwinding a large long position and profiting from short positions, causing panic selling and a rapid 35-40% price decline in a few hours.
The token has a fragile supply structure, with only 21% of total tokens in circulation and a small group of holders controlling most tokens. A recent transfer of 6.9 million LAYER tokens to Binance raised fears of a dump, triggering panic selling.
Technical indicators turned bearish with declining momentum, falling RSI below 50, negative MACD crossover, and decreasing volume during rallies, signaling weak buyer conviction and vulnerability to sell-offs.
The price was also in a critical technical pattern (ascending parallel channel), and a breakdown from this channel could lead to further crashes to new lows.
conclusion -the sharp drop in LAYER price was driven by token unlock-induced inflation, whale selling, low circulating liquidity, and negative technical signals causing panic and sustained selling pressure.
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