I made a post the other day shorting XAI, i am still short and this is exactly the reason i short these shitcoins with low leverage and for 1-2 weeks.
This price action is 100% manipulation, please look at the funding fee currently and how the price is reacting, if that doesnt scream manipulation then i dont know what does.
I will hold my short and i have another limit sell order at 0.4.(also 2x leverage)
I have done a lot of research into Token unlocks, this price action is normal, sometimes it takes time for the price to fall after a massive unlock.
Price fell 15% after my post so you possibly already cashed out profits, if not then dont panic i have high confidence the price will fall in the coming days-week.
This is research related to large token unlocks,š
The article states,
UnlocksĀ free up liquidityĀ and are widely considered bearish, though some observers say they onlyĀ accentuateĀ the existing market trend.
New research by analytics firm The Tie shows coins, on average, declined in the lead-up to the event. However, when the liquidity freed up represented more than 100% of the average daily volume, prices quickly recovered, only to fall deeper within two weeks following the unlock. The firm conducted a study of over 350,000 unique unlock events involving more than 100 tokens.
"In cases where the unlock represented more than 100% of the average daily volume, prices tended to rebound faster, albeit for a brief period. This could be attributed to traders feeling relieved that the unlock did not flood the market with new tokens immediately," Lawrence Lewitinn, the director of content at The Tie, wrote in Wednesday's newsletter.
"Nonetheless, within two weeks, prices of tokens facing such significant unlocks fell below their initial levels at the time of the unlock," he wrote. "
This may suggest that holders preferred to wait a few days before selling into the market."
The Tie's research also showed an exponential increase in trading volumes in coins that saw large unlocks.
End of Article.
Peace.
