It may likely rise if it gains real adoption, integrations, and usage flow of stablecoins in its network. But it may also fall if unlocks create selling pressure or if competition/adoption does not keep up.
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šŖ Price adjustment and new cycle of the crypto market š
In recent hours, the crypto market has experienced a new "reset" or adjustment in the prices of several currencies. Such movements are common during periods of capital accumulation and adjustment of positions by large investors.
A new base price usually marks the beginning of a consolidation cycle, where the most solid projects manage to stabilize their value and prepare for the next phase of momentum. This stage also opens strategic opportunities for those who analyze with patience and a medium-term vision.
It is important to understand that these adjustments do not necessarily represent weakness, but rather a natural process of correction and strengthening of the market. Staying informed and avoiding impulsive decisions is key to taking advantage of this new scenario.
There are several factors that often cause sudden drops in the crypto world. In this case, some of the reasons mentioned are:
Massive liquidations of leveraged positions Many traders operate with "leverage" (i.e., they borrow to multiply their exposure). If the price goes against them, those positions can be automatically "liquidated" (forced to close), which generates additional selling pressure. In yesterday's event, it is estimated that tens of billions of dollars in crypto were liquidated.
Announcement of geopolitical / surprise policy measures Right now, there is tension between the U.S. and China: there has been talk of imposing 100% tariffs on Chinese tech goods. This generates nervousness in global markets (not just crypto). Such "macro" news can shift investors toward safer assets, selling risk assets like cryptocurrencies.
Market sentiment (fear / panic) When declines accelerate, many investors sell to "cut losses." This can create a chain reaction (more sales provoke more declines). The "fear and greed index" went from a "greed" level to "fear" rapidly after recent announcements.
Technical factors / support breakdowns If a key price level ("support") is broken, many algorithms or traders trigger sell orders. This technical dynamic also fuels sharp movements.
In summary: a combination of surprising news (tariffs), many people trading with leverage, and a drop in confidence led to this aggressive crash.
š And why is the market "in the green" again now?
Once the price hits levels that many consider attractive, opportunistic buying can be activated. Some reasons for the recovery:
Buyback / entry of opportunistic buyers Investors who were waiting for a drop to buy take advantage of low prices to enter. This pulls the market up.