$LAYER | Why did Solayer Labs drop so much?

Today, on May 6, 2025, the Solayer (LAYER) token surprised investors by losing approximately 40% of its value. Several key factors lie behind this sudden drop:

📉 1. Upcoming Token Unlocking and Whale Sales

The price of the LAYER token fell from its all-time high of 3.41 USD on May 5 to 1.64 USD on May 6, a drop of about 40%. One of the main reasons for this decline is the selling pressure ahead of a major token unlocking event scheduled for May 11. According to on-chain data, a large investor (whale) closed their position during Asian trading hours, creating a significant short position through perpetual futures. This caused funding rates to turn negative and the price to drop rapidly.

🐋 2. Solayer Labs’ Large Token Transfer to Binance

Solayer Labs transferred 6.9 million LAYER tokens to the Binance exchange. This move raised concerns among investors about the future of the project and increased selling pressure. Such actions by large investors (whales) often create a negative impact in the market.

📊 3. Technical Indicators and Support Levels

According to technical analyses, the RSI value of the LAYER token on the 15-minute chart is at 39.53, indicating that the asset is approaching the oversold zone. Maintaining the price at the support levels of 0.83-0.82 USD is critical for a potential recovery.