📉 Drop of $LAYER — is there light at the end of the tunnel?

The LAYER token, linked to the Solayer project (Layer-2 on Solana), has suffered a significant drop in recent weeks — it has fallen by more than 60% since its peak of US$ 3.41 in early May. Understand the reasons and whether it is worth looking ahead.

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⚠️ Main triggers of the drop

1. Token release (unlock)

In May, 27 million tokens (~13% of the total) were unlocked, flooding the market with supply and putting pressure on the price.

2. Whale activity

Some institutional investors shorted in advance, increasing negative funding and generating even greater pressure.

3. Weak technical indicators

The price broke below an ascending channel, with RSI and MACD indicating a bearish bias.

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🔍 Are there signs of recovery?

Yes, but they are initial and cautious:

• The price dropped to the lower Bollinger Band and has already returned to the short-term average — a typical rebound signal.

• On the 4-hour chart, there is consolidation and gradual volume of interest — the first step towards recovery.

• The market consolidated in the range of US$ 1-1.12, serving as a potential support zone.

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🧭 Practical outlook

• Short term: possible retest of the US$ 1.20-1.40 region if the momentum is confirmed.

• Medium term: to resume towards US$ 2-3, it needs to stabilize token inflation, transparency with unlocks, and a strong recovery in volume.

• Risks: new large token unlocks and low adoption of real use (dApps, staking, integrations) could push the price down again to US$ 0.65 or lower.

#layertoken #layer #Solayer 2 #dyor #BinanceTrading