Can $ACT buy the dip now? Has it stopped falling?
The sharp decline of ACT coin is mainly triggered by the following reasons!!!
After reading, you will know why it crashed!!!
1. Adjustment of contract rules by A&A triggered a chain reaction
Binance exchange has adjusted the position limits and leverage multiples for several USD-denominated perpetual contracts, including ACTUSDT.
This rule change forced market makers who relied on high leverage to actively liquidate long positions.
The decline in contract market prices and the widening of the spot market price difference led to the intervention of arbitrage bots, further amplifying the selling pressure, ultimately causing the spot price to plummet.
2. Liquidation of long positions and market panic
According to Coinglass data, the liquidation amount of ACT contract long positions exceeded 7 million USD, while other altcoins faced nearly 8 million USD in liquidations.
A large number of forced liquidations triggered a chain reaction in the market, exacerbating investor panic selling, resulting in a situation of "double kill" for spot and contract.
3. Overall fragility of the Meme coin market
As a type of Meme coin, ACT itself has high volatility and speculative attributes. During this sharp decline, multiple Meme coins (such as DEXE, DF, etc.) also dropped synchronously, with declines generally exceeding 15%-50%, reflecting the market's collapse of short-term confidence in high-risk assets.
4. Technical sell-off and bot operations
A large volume of sell orders flooded the market in a short period, leading to a surge in trading volume.
Arbitrage bots accelerated the vicious cycle of price decline by capturing the price differences between contracts and spot.
Supplementary background
- Previously, ACT had experienced severe fluctuations due to developer sell-offs (November 2024) and whale manipulation (November 2024).
However, this incident is directly related to the adjustment of Binance's rules and falls under systemic risks triggered by market mechanisms.
The adjustment of the minimum order quantity for SOL USDT contracts by Binance may indirectly affect market liquidity and exacerbate volatility.
The core reason for this sharp decline is the technical sell-off triggered by Binance's contract rule adjustments, compounded by the high speculative nature of the Meme coin market, ultimately forming a short-term liquidity crisis.
It is still necessary to remain vigilant about the impact of exchange policy changes on the contract market, especially in a high-leverage environment.
Many friends chose to buy the dip of ACT after this wave of sharp decline.
$ACT
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