In the dead of night in the cryptocurrency market, a thrilling storm quietly approached. The AUCTION token faced a catastrophic crash overnight, with its price halving by 61%, and 2 million tokens were precisely harvested, causing a huge uproar in the market. What exactly led to this scene? How will the current market structure evolve? Let's delve into the core of this turmoil.
1. The three main culprits behind the crash
(1) The fatal blow from the whale
A mysterious whale quietly accumulated 26% of the circulating supply through four addresses, like a ticking time bomb. On March 23rd, in the early hours, the whale suddenly launched an attack, dumping 1.66 million AUCTION tokens on the two major exchanges, BN and OKX, causing the price to plummet from $68 to $19, a decline of over 70%. This sudden sell-off was like a nuclear explosion, shocking the entire market. What is even more unsettling is that 1.5 million tokens (20% of the circulating supply) remain unresolved, and could be dumped into the market at any time, creating ongoing selling pressure.
(2) The project's 'coordinated harvesting'
As the whale launched its attack, the project side also seemed to 'cooperate' tacitly. At 3:13 AM on March 23rd, the project's multi-signature address transferred 359,000 AUCTION tokens to the exchange, valued at approximately $20.48 million. Just three minutes after the transfer was completed, the price began to collapse. Previously, the team had attempted to boost the price through news of locking and releasing AI auctions to attract retail investors to follow suit. However, this was merely a trap laid out for harvesting retail investors; once they bought in, the project violently dumped tokens, wiping out their funds.
(3) The liquidation effect of contract leverage
This crash was like the collapse of a domino chain, triggering a chain reaction in the contract market. The crash instantly triggered $12 million in long liquidations, and the negative funding rate indicates that shorts firmly control the market. Many retail investors, using 5-10x leverage, faced instant liquidation to zero during the crash, further depleting market liquidity and creating a vicious cycle.
2. In-depth analysis of the current market structure
(1) Highly concentrated chips, controlled by major players
Currently, the AUCTION token's chips are highly concentrated, with the top 10 addresses controlling 45% of the circulating supply, and major players completely control the market rhythm. Although the project side has locked up 1.5 million tokens, this only accounts for 10% of the total, which seems insignificant in the face of the whale's selling pressure and is powerless to reverse the situation.
(2) Collapse of ecosystem expectations, value in doubt
The once heavily promoted AI Launchpad feature now has less than 10,000 daily active users, and the cross-chain auction feature has yet to be launched. The utility of the token is severely questioned, and its market cap of $137 million (ranked 363) appears excessively inflated. The project's monthly revenue is less than $500,000, which cannot support such a high market cap, and the collapse of ecosystem expectations has caused investor confidence to plummet.
(3) Market sentiment collapse, funds fleeing
On social media, negative sentiment accounts for over 90%, and investors are filled with despair about the future of AUCTION. The trading spread on exchanges is as high as 3%, and large funds are fleeing, further depleting market liquidity and creating a silent market environment.
3. Analysis of key price ranges
(1) Support Level
• $18.6: This is the critical price point from which the rally began in March. If it falls below this, it will trigger a second wave of panic selling, potentially leading to further market collapse.
• $16.5: This is the psychological barrier at the bottom of the bear market in 2024. Once breached, investor confidence will completely collapse.
(2) Resistance Level
• $21.8: This is the rebound high point after the crash and a densely packed area of trapped positions, where prices will face significant selling pressure.
• $25: This is the historical cost zone for the major players and a strong resistance level, where prices will face a life-and-death test.
Personal opinion: The risk of project value going to zero is extremely high.
From the current situation, it appears that the major players have clearly indicated their harvesting strategy, and the market structure has completely changed. Based on historical declines, the price of AUCTION may further drop to the range of $3-5. Investors should exercise caution and avoid blindly bottom-fishing to prevent falling into a deeper predicament.
The turmoil of this AUCTION once again reminds us of the cruelty and ruthlessness of the cryptocurrency market. While chasing wealth, we need to maintain a clear mind, carefully analyze the logic behind each project, and avoid becoming targets for the major players to harvest.
Wishing my friends who are lucky enough to see this that their purchased coins rise in rankings every day! May you make money every day 🤑, and by the way, please like + follow + comment for support! I will update more good content to share with everyone daily!
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