Siren [SIREN] has seen sharp swings in recent days, with the sector rising one day and tumbling the next. Following last week’s uptrend, the memecoin has dropped about 20% in the past 24 hours, pulling back from its recent high.
The question now is: what triggered this sudden decline?
Analyzing Siren’s looming sell pressure
As per data from Arkham Intelligence, a wallet moved 22.852 million SIREN worth over $8 million recently. Of this amount, about one million SIREN, valued at around $373K, was deposited into Gate Exchange.
The deposit suggested potential looming sell pressure, raising questions if the whale was planning to deposit this whole amount in batches. Usually, whales tend to test liquidity with these kinds of moves before dumping.
The remaining tokens in the portfolio, about 21.852 million SIREN worth $7.85 million, were down 10% on the day. Continued decline could force the whale to sell.
That means SIREN crypto could be on the verge of more decline, especially now that it trades around its highs.
SIREN price approaches a major trendline
On the charts, SIREN crypto has dropped more than 50% from its peak valuation at around $0.609 to $0.300. At press time, the memecoin traded around $0.347, just above the support level of around $0.300.
The price of SIREN had bounced off the rising support more than six times, indicating the level was strong. This put $0.30 as the next target area, as it aligned with the ascending support level.
The support level at $0.30 could hold for a bounce back, but the looming sell pressure could force a breakdown. The Chaikin Money Flow (CMF) was at negative 0.24, reinforcing the ongoing capital outflow.
Additionally, the Cumulative Volume Delta (CVD) showed that sell volume was dominating. A total of 4.8 million SIREN were being sold at press time.
KEY liquidity level aligns with major support
The key liquidity levels aligned with the trendline support, as per data from CoinGlass. The most dense liquidity cluster near the price action was just below $0.30.
The chart showed that the memecoin was sweeping liquidity as the price fell throughout the day. Conversely, the denser clusters above the price were at $0.55, which could become a target if the price bounced off the support around $0.30.
With the whale potentially starting to offload their tokens alongside a dense liquidity cluster below the price, $0.30 could be the next target. A bounce here could push the price to $0.55, while a breakdown would amplify the losses.
Final Summary
- SIREN declined 20% as a whale’s wallet moved tokens into the exchange.
- SIREN price appeared to be on a path toward $0.30, and a reaction here would determine its next trajectory.
