Reasons for the Collapse of KOGE Currency (48 Club Token)😲😲

It seems that KOGE (48 Club Token) has experienced a sharp decline recently. Here are the possible reasons behind this decline:

1. Large Liquidity Withdrawal (LP Exit / Liquidity Pool Withdrawal):

♦️Some analyses indicate that a main reason for the decline is that large wallets have withdrawn massive amounts of liquidity from KOGE's trading pairs, especially the KOGE/ZKJ pair.

♦️When liquidity is withdrawn in large amounts, it leads to a sharp drop in the currency's price because there are fewer coins available for purchase in the liquidity pool, making any large sell-off significantly impact the price.

2. Its Connection to ZKJ and Existence of Contracts:

♦️There seems to be a connection between KOGE and ZKJ. One analysis suggests that the main reason for selling KOGE first before ZKJ might be that ZKJ has contracts that allow traders to open short positions on exchanges while selling the currency on-chain at the same time.

This enables traders to profit from the price decline, increasing selling pressure.

3. Decrease in Trading Volume and Insufficient Liquidity:

♦️Analyses indicate that the trading volume of Alpha (which could be a project or an index related to KOGE) has decreased for several days, which may be a triggering cause.

♦️When liquidity ranges (LP ranges) are too narrow, any large sell-off exceeding this range makes it difficult to have enough buyers to absorb the selling pressure.