It has decreased by 2.48% over 24 hours, continuing its weekly decline of 7.88%. Key factors:
Token opening 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. Impact of token opening (Bearish)
Overview:
$17.44 million worth of LAYER tokens were opened this week, as part of a broader crypto opening wave worth $653 million. Openings are historically associated with price declines due to increased circulating supply and the potential for profit-taking.
What this means:
Newly opened tokens (about 3% of LAYER's market cap of $159 million) dilute the value for holders. This comes after its opening in May 2025, which was preceded by a price drop of 64% from $3.35 to $1.2, 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 a bearish momentum. Continued breakdown below the Fibonacci retracement level of 23.6% ($0.679) suggests that traders are defending lower support areas.
3. Market-level risk aversion (Mixed)
Overview:
The cryptocurrency fear/greed level stabilizes at 53/100 (Neutral), with Bitcoin dominance rising to 57.55% as capital moves away from altcoins.
What this means:
LAYER has underperformed compared to the broader cryptocurrency market (-2.48% vs. -0.41% of total market capitalization) due to decreased liquidity (turnover rate: 0.166 vs. market average of 0.33).
Summary
The decline in Solayer reflects a decrease in project value due to token opening events and weak technical indicators, exacerbated by caution in the altcoin market.
Key watch: Will the LAYER token hold the Fibonacci bottom at $0.534, or will the oversupply re-test the May 2025 support level at $0.6?
@Solayer #BuiltonSolayer $LAYER