siren [SIREN] doubled its cap twice in the past month, each followed by a full retracement, while its third bounce managed to rally about 50%.
However, the last 24 hours have seen SIREN crash by more than 83%, indicating the momentum was unstable.
Will the price crash continue, or will the SIREN-controlling address move to salvage the token?
SIREN price breaks below multi-week support level
On the charts, SIREN price broke below a multi-week rising support level after bouncing off it three times. In the last 24 hours, the memecoin crashed from around $1.77 to $0.28, resulting in a drop from an over $1 billion in market cap to slightly above the $200 million market cap.
The memecoin has been bouncing off in a symmetrical wedge pattern following a bullish month. The RSI Divergence indicator flipped bearish, while the MACD turned red, indicating that sellers were in control.
Source: SIREN/USDT on TradingViewThe pattern is a signal of continuation or reversal.
Hence, the reason why more structure confirmations were needed.
A confirmed retest of the broken support zone at $0.80 would render the structure bearish, while reclaiming it would invalidate the bearish setup.
What drove the price crash
Three major factors drove the price crash: profit-taking, selling pressure, and leveraged shorts in the Futures market.
After the price hit $2 from around the $0.70 area, traders took profits as the candle had multiple wicks.
Wicks, especially on bullish candles, indicate that traders were closing their long orders. A spike in daily volume by 983% as the price crashed confirmed the selling pressure.
Moreover, over $20 million in shorts were placed on the Binance Futures market, accelerating the drop. Across all exchanges, the total cumulative short liquidation leverage was $22 million compared to $3 million in longs.
Source: CoinGlassSIREN-controlling address making moves
Meanwhile, that is not all there is for SIREN. Holders’ hands seem to be shifting, especially for the biggest wallets that appear to be controlling the price of SIREN.
The wallet sold about 500K SIREN at an average fee of $0.95 for $473K.
However, after the 83% crash, Arkham data showed they were back to buying, scooping 1 million SIREN worth $273K. Their total holdings stand at 645.5 million SIREN, worth $212 million.
The previous buys of this address have driven the price up, while its selling has also led to a decline.
The significant amount held in one account raises concerns, but the number of holders still spiked during this crash.
Onchain holders spiked from 39.85K to 44.58K overnight. This spike of more than 5K buyers of the memecoin indicates intense buying, which could salvage the declining price action.
Source: CoinMarketCapFinal Summary
- SIREN price action crashed 83% amid profit-taking, sell-volume pressure, and leveraged shorts.
- The SIREN-controlling address has returned to intense buying as the number of holders rises, indicating increased buying activity.
Source: https://ambcrypto.com/siren-83-price-drop-wipes-millions-yet-one-bullish-signal-remains/
