The post Loom Network (LOOM) Drops 70% Post 1000% Rally; Can It Recover? appeared first on Coinpedia Fintech News
LOOM plummets by over 70% following the recent exceptional 1000% rally.
Loom Network’s native token, LOOM, captured immense attention last week after a parabolic rally of over 1000% before violently plummeting.
The explosive but short-lived surge was sparked by news of a partnership between Loom and Atlassian, with the latter acquiring Loom for $975 million. This announcement sent LOOM to a peak of $0.4846.
However, the euphoria rapidly dissipated. At the time of writing, according to CoinGecko data, LOOM trades around $0.1089—a 31% decline in the last 24 hours and an over 70% drop since its recent surge.
Selling pressure from whale causing LOOM’s price drop
Data from Lookonchain revealed concentrated selling pressure from a wallet holding 47% of the total supply post-peak. This overwhelmed the buying demand for LOOM and caused prices to capitulate.
After the price of $LOOM skyrocketed by ~60%, the wallet suspected to be #Upbit transferred 36M $LOOM ($17.7M) out just now.The wallet currently holds 617M $LOOM ($283M), 47.5% of the total supply.https://t.co/oergGUqAgohttps://t.co/nJRrNHPLlO pic.twitter.com/uWaMGMbxxL
— Lookonchain (@lookonchain) October 15, 2023
The dramatic rise and fall illustrates the fickle nature of crypto assets, especially smaller-cap tokens. Sentiment can pivot extremely quickly from euphoria to fear.
Initially, the Atlassian deal generated huge hype around Loom Network. But once the whale wallet began offloading, confidence evaporated and profit-taking kicked into high gear.
While the acquisition brought validity, the token economics and distribution concentration made the project vulnerable to this type of collapse.
For now, Loom Network is left to pick up the pieces after its fleeting moment of prominence. The challenges of sustaining long-term price growth remain an obstacle for many altcoins.