What is a sell off? Really??
A sell-off is a dramatic plunge in asset price, driven by a rush of sellers creating a storm of high volume trades. But with $USUAL , the drop was more like a silent, eerie fall... a mystery rather than a panic.
Why the USUAL scenario might not TECHNICALLY Be a Sell-Off:
Lack of Volume Confirmation: If the trading volume does not correspondingly increase during the price drop, this might suggest that the price movement is not due to widespread selling but could be influenced by other factors like market manipulation, news-driven volatility without broad market participation, or technical adjustments.
De-PEGGING event: In the case of USUAL, the simultaneous drop in $USD0's value below its peg could indicate issues specific to the stability mechanisms of these assets rather than a traditional market-wide sell-off. A depeg event might suggest liquidity problems rather than a unanimous decision by investors to sell off the asset.
Timeframe: If the price drop was very brief or corrected quickly without sustained high volumes, this might not meet the criteria for a classic sell-off, which usually involves a more prolonged period of selling pressure.
Other factors: If the price drop was influenced by known upcoming events or announcements (like regulatory news specific to the asset class), it might not reflect a broad market sentiment shift but rather a reaction to specific, known risks.
Given these points, while the situation with USUAL and $USD0 certainly involved a significant price drop, the absence of expected sell-off characteristics like sustained high volume might mean it wasn't a "traditional" sell-off but rather a response to unique circumstances or technical issues within the asset's ecosystem. However, without specific data on trading volumes or more detailed market analysis, this interpretation MIGHT be wrong.
