The Chatgpt context:
Solayer saw its price collapsed only one day after a historic price record. The room lost almost 45 % of its value.
The Layer cryptocurrency lost nearly $ 350 million in market capitalization during this collapse. With rising volatility and the long/short ratio now at 1.45, the market seems divided between those who expect a rebound and those who are preparing for a new drop.
What’s going on for Layer cryptocurrency?
Layer dropped by around 45 % in just 24 hours. The price of the assets increased from almost $ 3.10 to $ 1.64, leaving the community without response and in doubt. Despite fundamentals, however solid to Solayer, (blockchain targeting more than 1 million TPS and a bandwidth of 100 GPBS), the price of the assets almost did like the Mantra cryptocurrency.
The project also offers a concrete utility thanks to its Solayer Emerald Card, which allows users to spend the USDC fluidly via Visa, with Apple Pay and Google Pay support.
Between February 18 and May 5, Layer even climbed 460 %, making one of the most efficient altcoins of the year … until sudden Crash which came to disturb this dynamic.
Currently, confusion reigns with accusations of price manipulation and liquidations that could have been initiated by major holders. As with OM’s collapse, the founders are also pointed out due to daily release of 110,600 layer tokens.
However, these daily releases represent only a value of $ 219,000, which is meager compared to the $ 250 million in Market Cap who were able to disappear. The concern could increase on May 11 with a massive release of 26.5 million layer (valued at $ 51 million currently) already planned.
If the feeling of the market is not recovered by then, this influx of supply could potentially intensify the sales pressure. Consequently, the price E cryptocurrency could fall more.
Liquidations that fuel panic
The Layer Long/Short ratio was 0.78 in the last 24 hours, with 56.14 % of the traders positioned downwards.
-About $ 3.2 million in long liquidations were launched, more than double the $ 1.5 million in short liquidations. This forced sale probably accelerated the fall in the part from $ 3.10 to $ 1.64, while cascades liquidations amplified the pressure.
Although the Long/Short ratio has since tilted 1.45 (traders are positioning themselves more and more for a rebound), the lack of depth of the order book remains a concern. In such an environment, price volatility can remain high, whether feeling becomes up or not.
Long positions accumulate around layer
Layer’s prospects remain very uncertain while the price has dropped by more than 45 %. The room is moving more and more for $ 2 with an exchange price of $ 1.64 at the time of writing.
Traders and investors still seek to understand the cause of collapse, while feeling remains very fragile. “At dawn” of May 11, the risks of liquidation are still too present.
In this context, the current long/short ratio of 1.45 reveals an important change: more Paris traders on a rebound with 59.2 % long positions against 40.8 % for short positions.
This bias could tell us that a large part of traders would consider that the worst is now behind us.
However, if the asset is not straightening up, the long positions could once again be liquidated as before.
Morality of history: a day closest to the sun and then we burns our wings.
Notice of non-responsibility
Notice of non-responsibility: In accordance with the directives of The Trust Project, this price analysis article is only intended for information purposes and must not be considered as financial or investment advice. Beincrypto undertakes to provide exact and impartial information, but market conditions may change without notice. Always carry out your own research and consult a professional before making any financial decision.
