$BULLA After plunging 66%, Binance will activate its latest price protection mechanism
BULLA fell from 0.14876 to 0.05075 over the past 24 hours, with a maximum drawdown of about 66%. It has now recovered to around 0.0755.
Due to large spot price discrepancies across multiple exchanges and restrictions on deposits and withdrawals, Binance will activate its latest price protection mechanism, LPP, at 14:00. Within certain limits, the mark price will reference the average latest traded price of perpetual contracts and transition smoothly, reducing the risk of abnormal external quotes directly triggering liquidations.
But this is not a price floor, and it will not stop BULLA from continuing to fall. It only temporarily changes the pricing and liquidation reference methods.
Open interest fell by 54% over 24 hours, but has risen by 31% in the past six hours, suggesting traders have started re-entering after exiting leveraged positions. After 14:00, watch whether cross-exchange price discrepancies narrow and whether open interest and price move in the same direction.
LPP protects the pricing system, not the direction of your position. #BULLA
BULLA fell from 0.14876 to 0.05075 over the past 24 hours, with a maximum drawdown of about 66%. It has now recovered to around 0.0755.
Due to large spot price discrepancies across multiple exchanges and restrictions on deposits and withdrawals, Binance will activate its latest price protection mechanism, LPP, at 14:00. Within certain limits, the mark price will reference the average latest traded price of perpetual contracts and transition smoothly, reducing the risk of abnormal external quotes directly triggering liquidations.
But this is not a price floor, and it will not stop BULLA from continuing to fall. It only temporarily changes the pricing and liquidation reference methods.
Open interest fell by 54% over 24 hours, but has risen by 31% in the past six hours, suggesting traders have started re-entering after exiting leveraged positions. After 14:00, watch whether cross-exchange price discrepancies narrow and whether open interest and price move in the same direction.
LPP protects the pricing system, not the direction of your position. #BULLA