Siren (SIREN), a Binance-based memecoin, is in the headlines once again after a sustained price dump saw it fall by over 62% in the past two trading days. Is this normal though? Well, a look at its price chart would suggest yes, especially since it has recorded similar moves in the past.
Valued at $0.875 at press time, as expected, the memecoin’s market cap fell significantly too – From $1.835 billion to $637.42 million in just 24 hours.
Upon examining the price and market cap, it would seem that market participants may be hesitant to engage with the token. Especially since the trading volume also declined by 14.81% to $90.87 million.
Hence, the question – What is potentially driving SIREN’s price lower?
Why is SIREN’s price falling?
The broader market sentiment has been bearish due to the ongoing war between the U.S, Israel, and Iran. Thanks to the same, major assets including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) have all fallen on the charts lately. However, it would seem that the crypto meme sector is facing the strongest share of selling pressure so far.
Another factor that has the potential to drag SIREN’s price down is its concentration. According to Arkham Intelligence, for instance, a single entity now holds approximately 88% of the circulating supply. This significantly increases the risk of price manipulation for SIREN.
Meanwhile, SIREN’s recent breakdown below the key support level at $0.99 has further strengthened the selling pressure.
Price action and key levels to watch
On the daily chart, SIREN turned bearish after it lost control of a key support level at $0.9952. The chart showed that the memecoin had held this level since 22 March, with the price testing it multiple times. However, it lost its hold today.
Source: TradingViewIf SIREN closes a daily or four-hour candle below this level, it could continue its downtrend and may reach the next support at $0.78 in the coming days.
Additionally, the technical indicator Average Directional Index (ADX)—which measures trend strength—hit 53.65, well above the key threshold of 25. This hinted at strong directional momentum for SIREN.
SIREN – Derivatives data signal bearish sentiment
According to Coinglass, bulls were hit the hardest during this decline. $2.94 million worth of leveraged positions were liquidated over the past 24 hours, with $1.96 million coming from long positions, while only $982.83K in short positions were liquidated during the same period.
Source: CoinglassAt press time, traders were continuing to eye short-leveraged positions, with $0.8217 and $0.9515 emerging as two key levels where traders seemed to be over-leveraged.
At these levels, traders built $891.08K worth of long positions and $1.79 million worth of short positions. This suggested that bullish interest in SIREN might be fading as bears continue to dominate the memecoin.
Source: CoinglassFinal Summary
- SIREN plummeted by 54% over the past 24 hours, with price action suggesting that the $0.78-level could be the next support for the memecoin.
- In the memecoin market, sellers have remained dominant, with $1.79 million in short-leveraged positions compared to $891.08K in long positions.
Source: https://ambcrypto.com/sirens-54-crash-wipes-out-millions-whats-next-for-the-memecoin/
