#ALCH Breaking News! Last week, fans precisely targeted key short positions, and many fans have made thousands of U in several waves of profits. Why did ALCH crash? A deep analysis of the underlying logic!
News Analysis
The news is usually a direct catalyst for short-term price fluctuations, which may include:
Negative news or regulatory dynamics
The project team exposed for fraud, cashing out, or misappropriation of funds.
Regulatory agencies intensifying scrutiny in the project’s field (such as DeFi, blockchain games, etc.) or directly naming ALCH for violations.
Partners (exchanges, institutions) suddenly terminating support, leading to a sharp drop in liquidity.
Deterioration of project fundamentals
Key products delayed, vulnerabilities exploited (e.g., smart contract hacking).
Issues with the token economic model (e.g., large unlocks, concentrated selling pressure).
Competitors replacing its market position, or the project team announcing a halt in development.
2. Logical Analysis
The crash may indicate a long-term logical breakdown:
Valuation logic failure
ALCH may have been overvalued due to narratives (like AI + blockchain), but the actual product failed to materialize, and the market realized its value was exaggerated.
Insufficient token utility (e.g., only used for governance), leading holders to lack reasons for long-term holding.
Supply and demand imbalance
The rate of token release far exceeds demand (e.g., VC/team selling after unlocks).
High staking rewards causing inflation rates to soar, with continued accumulation of selling pressure.
3. Technical Analysis
Technical indicators can help assess the rhythm and key points of the crash:
Breakthrough of key support levels
Price breaking below long-term moving averages (like the 200-day moving average) or previous low supports, triggering programmed stop-losses or leverage liquidations.
Sudden increase in trading volume, indicating large capital fleeing.
Chain reaction in the derivatives market
When open interest (OI) in futures is too high, a price drop triggers a chain liquidation of long positions, exacerbating the decline.
Long-term positive funding rates leading to short-seller targeting ('longs killing longs').
During the Dragon Boat Festival holiday, the market collapsed, and Brother Jie’s team once again showcased their unbeatable strength.
This is the power of following the big players! Brother Jie never plays games with trades; when he says liquidation, it’s liquidation, when he says doubling, it’s doubling! Those who followed are now enjoying their accounts more fragrant than zongzi!
For those who haven't hopped on yet, don’t rush; there will be nuclear-level layouts next week! Get your ammunition ready, and I’ll take you to bloodbath Wall Street!
