#STX #freaktrade
What you’re seeing on the STX/USDT chart is a classic example of a "freak trade" or flash crash — where the price briefly dropped to an abnormally low level (in this case, $0.289) before recovering quickly. Here are a few things to note:
Key Observations:
15-minute candle shows a sudden wick down to $0.289 while the rest of the chart is relatively stable.
24h Low reflects this freak dip: $0.289, compared to a high of $1.001.
Volume spike occurred during the freak trade (395,631.4 STX), indicating a large sell-off or stop-loss cascade.
Possible Causes:
1. Fat-finger error: A trader may have accidentally placed a large market sell order, pushing the price down due to low liquidity in the order book at that moment.
2. Stop-loss hunting: Market makers or bots can trigger sell-side liquidity by intentionally moving the price down momentarily.
3. API bot malfunction: Sometimes algorithmic or bot trading through APIs can malfunction, triggering abnormal price behavior.
4. Thin order book: If there wasn’t enough liquidity in the lower order book, even a small order could cause a sharp drop.
Should You Worry?
Please write in comment if you were affected?
If you were affected (e.g., stop-loss got triggered or you had pending orders), consider:
Reviewing your risk management settings.
Avoiding market orders in low-liquidity pairs.
Using limit orders with protective stops that account for such anomalies.
