How are all my friends? I hope you are keeping yourself in check amidst this volatility in the crypto market. Today, I came to talk about a token called LINEA. Recently, there has been a lot of excitement in the market about it, but that excitement is not exactly joy, but rather a bit of concern.
The LINEA token, which was in a good position just a few days ago, suddenly lost about 40% of its value and is now hovering around $0.025. The price has fallen by about 9% in a single day. But the question is, why did this happen suddenly? Let's try to understand the whole thing simply.
Now, a strange scene is being seen in the LINEA market. On the one hand, those "smart money" or intelligent investors who are experienced and understand the market movements are selling their coins in large quantities and exiting the market. According to information, they have sold about 24 million LINEA tokens in the last 24 hours, which is about 85% of their total holdings!
On the other hand, a handful of 'mega whales' (those who have A lot of tokens) are doing the exact opposite. They are trying to keep the market alive by buying up about 157 million LINEA.
It's like a boat with experienced sailors jumping off the boat after sensing danger, while only a few giant passengers are trying to keep the boat afloat.
The main reason behind this is technical analysis. A dangerous pattern called "head-and-shoulders" has formed on the chart, which usually indicates a major drop in the price of a coin. Smart investors have quickly sold their coins to protect their capital as soon as they get this signal. They have realized that even bigger dangers may lie ahead.
Although a few big investors are buying millions of tokens, the overall market situation is quite weak. An indicator called the Money Flow Index (MFI) shows that there is very little buying interest. In other words, even though big investors are buying, ordinary and medium investors are not getting confidence. It is like a few people are trying to lift a heavy object, but everyone else is watching and walking away. Due to this weak buying interest, the market is not able to turn around.
What is the future of LINEA?
According to the technical chart, if this decline continues, then the price of LINEA will decrease
So friends, all in all, LINEA is now in a very risky position due to the exit of smart investors and weak buying interest. Although the 'mega whales' have not given up yet, only time will tell which way the market will turn in the end.
Posted using SteemMobile
