Tuft Token (Tuft), the native cryptocurrency of the Treasure NFT platform, has suffered a fantastic collapse of price and market trust. The token has decreased by 57.71% within the last 24 hours and is now with only 0.00009651 USD. While the value volatility in crypto will not be unusual, it’s more alarming that the tuft liquidity pool has almost dried out – and only $ 3.72 is on the market for trade.
The liquidity drops to a critical level, which shows tuft practically not noticeable indicators
The liquidity lowers to a critical level
The biggest red flag, which today deals with Büschel, is the dangerously low liquidity. According to Live Data from Pancakeswap V2 on Binance Smart Chain, the Tufft/USDT pair only has $ 3.72 in liquidity. This implies that every try to buy or sell token price just a few dollars could cause massive price fluctuations. At this level, Tufft is effectively illiquid – which implies that owners can now not leave the token without severe slip or loss.
Tuft liquidity and trade volume decrease to a critical level. Source: geckoterminal
Such a severe decline in liquidity indicates one among several scenarios: liquidity providers can have withdrawn the support, the event team can have pulled funds, or the pool may never have been properly financed. For investors, this case raises concerns a couple of potential carpet train or a project on the breakdown.
The market activity also collapsed along with the token price. In the last 24 hours, the traded total volume was only $ 68.33, with 75 small transactions. On average, that is lower than 1 US dollar per transaction, which shows almost no meaningful purchase or sale. This lack of demand confirms that the interest in investor has dried out.
Even if users need to buy or sell a tufts, the mixture of extremely low liquidity and low volume makes this almost unimaginable. The market is now frozen, unless there is obvious efforts to revive liquidity, the token could remain indefinite on this condition.
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Technical indicators show no signs of recovery
Tufft's trading indicators confirm that the market is weak. The relative strength index (RSI) is 45.35, which is neutral, which indicates that the token is neither over -kinged nor oversold. However, the MacD stays below the signal line and shows no bullish impulse. The Bollinger bandwidth (BBW) is 1.78 and reflects a really low volatility in a tongue that only decreased by almost 60%.
The chart prospects remain bearish and without signs of reversal. Geckot terminal
This combination of tufts token flat indicators and collapsed price suggests that there is no such thing as a buying pressure to support a back rim. The market seems to have entered a time of stagnation wherein the token is technically alive but functionally inactive.
Is TUF a breakdown? The data indicates a significant issue. A token with only 3 US dollars of liquidity and lower than $ 70 within the trading volume isn’t any longer functional as an asset. Without a powerful statement by the Treasure NFT team or the fresh capital that enters into the liquidity pool, breaks turn into a dead token.
