It decreased by 2.48% over 24 hours, continuing its weekly decline of 7.88%. Key factors:
Token unlock pressure - LAYER worth $17.44 million entered trading this week, increasing selling risks.
Technical weakness - a price drop below critical moving averages ($0.57-$0.62) indicates bearish momentum.
Altcoin sentiment - neutral risk appetite at the market level (Altcoin season index: 46/100) limits recovery.
In-depth analysis
1. Token unlock impact (bearish)
Overview:
The LAYER token worth $17.44 million was unlocked this week, as part of a broader unlocking wave in cryptocurrencies valued at $653 million. Unlockings have historically been associated with price drops due to increased circulating supply and profit-taking potential.
What this means:
The newly unlocked tokens (about 3% of LAYER's market cap of $159 million) weaken the value of their holder. This comes after being unlocked in May 2025, which was preceded by a price drop of 64% from $3.35 to $1.20, representing a bearish precedent.
What to watch for:
Increases in trading flows or movements in whale wallets indicate intense selling.
2. Technical analysis (bearish)
Overview:
LAYER is trading at $0.563, below its 7-day simple moving average ($0.573) and its 30-day simple moving average ($0.619). The relative strength index shows -14 (43.01) indicating oversold conditions, but lacks bullish reversal signals.
What this means:
The MACD indicator chart (-0.0014) confirms bearish momentum. Continued breaking below the 23.6% Fibonacci retracement level ($0.679) indicates that traders are defending lower support areas.
3. Market-level risk aversion (mixed)
Overview:
The fear/greed level in cryptocurrencies is settling at 53/100 (neutral), with Bitcoin dominance rising to 57.55% as capital flows away from altcoins.
What this means:
LAYER has underperformed compared to the broader cryptocurrency market (-2.48% vs. -0.41% of total market cap) due to its reduced liquidity (turnover rate: 0.166 vs. market average of 0.33).
Summary
The decline in Solayer reflects a decrease in the project's value due to token unlocks and weak technical indicators, which has been exacerbated by caution in the altcoin market.
Key observation: Will LAYER’s price hold the Fibonacci bottom at $0.534, or will the oversupply retest the support level from May 2025 at $0.6?
@Solayer #BuiltonSolayer $LAYER
