WalletConnect Token (WCT) Plummets 63% Overnight Amid Allegations of Market Manipulation

In a dramatic turn of events, WalletConnect Token (WCT) experienced a precipitous decline, dropping from $1.38 to $0.50 within 24 hours—a staggering 63% loss that has left investors reeling.

Anatomy of the Crash

Several factors contributed to this sudden downturn:

‱ Profit-Taking by Early Investors: Following a significant price surge, early investors began to realize profits, leading to increased selling pressure.

‱ Whale Activity: Large holders, or “whales,” reportedly started offloading substantial amounts of WCT, exacerbating the downward momentum.

‱ Panic Selling: The rapid price decline triggered panic among retail investors, resulting in a trading volume exceeding $500 million on Upbit alone.

‱ Lack of New Developments: The absence of recent updates or news to sustain investor enthusiasm contributed to the loss of confidence.

‱ Futures Market Volatility: The futures market saw a trading volume of $3.4 billion, with a significant increase in short positions, indicating a bearish outlook.

‱ Technical Breakdown: The price breached major support levels, confirming a downtrend and further fueling the sell-off.

Allegations of Market Manipulation

Emerging reports suggest that WCT’s price surge may have been artificially inflated through coordinated efforts in private messaging groups. Users on Reddit have alleged that WhatsApp and WeChat groups orchestrated pump-and-dump schemes, luring unsuspecting investors with promises of quick profits before dumping their holdings, leading to massive losses for late entrants. ïżŒ ïżŒ

Investor Caution Advised

While WalletConnect’s fundamentals remain intact, with backing from major exchanges and a robust ecosystem, the recent events underscore the risks associated with speculative trading and the influence of coordinated market manipulation.

Investors are urged to exercise caution, conduct thorough research, and remain vigilant against potential scams. The $0.50 price level is now seen as a critical support; a sustained break below this could signal further declines, potentially down to $0.20.

$WCT

$XRP

$SOL

#CEXvsDEX101 #TradingTypes101 #FTXRefunds #TrumpMediaBitcoinTreasury #PCEMarketWatch