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TOWNS crypto: $0.08 to $0.035 in 48 hours – What’s behind this 50% drop?
In a shocking turn of events, TOWNS crypto plummeted a staggering 50% within a mere 48 hours, sliding from an all-time high of $0.088 to an unprecedented low of $0.035 before slightly recovering by press time. As the dust settles, AMBCrypto has analyzed the situation and discovered that whales and retail investors alike have turned aggressive profit realization into action.
According to Nansen data, TOWNS’s top holders increased their holdings by 3.13 billion tokens on August 4th. A mere day later, however, they took profits by offloading massive amounts of tokens onto exchanges. This rapid shift from accumulation to distribution led to a stark imbalance in the market, ultimately resulting in an unrelenting sell-off.
In a clear indication that retail investors have caught wind of this trend, data from Coinalyze shows sustained sell pressure as spot market retailers aggressively dumped their holdings on Binance and Coinbase. The cumulative sell volume exceeded 2 billion tokens across both exchanges on August 5th and 6th alone, with the net buy/sell delta for both days coming in negative.
As a result of this catastrophic loss, TOWNS’s market capitalization dwindled from $163 million to a mere $86.3 million, reflecting an unprecedented withdrawal of capital from the asset.
To make matters worse, futures data paints a grim picture. The Open Interest has fallen from $12.6 million to $10.93 million, indicating that speculative demand is waning fast. Additionally, the Long/Short Ratio has dropped to 0.88, with a staggering 53% of positions now in short.
Notably, the Funding Rate remained negative at -0.0240 while the Predicted Funding Rate sat at -0.0227, hinting that traders are still willing to pay to hold shorts – a stark indication that the sentiment has turned decisively bearish.
In light of these findings, it is likely that TOWNS crypto will continue on its downward trajectory if selling activity persists at this rate. Furthermore, our analysis suggests that any potential support around $0.034 may not be able to withstand the onslaught of bearish sentiment currently engulfing the market.
Ultimately, the stark reversal in demand and the subsequent price action suggest that a reclamation of $0.046 could potentially occur if buyers were to step into the void left by these aggressive sellers.
Source: ambcrypto.com
