Newton Gitonga
Digital currencies remained calm on Friday as the global crypto market gained only 0.57% in the past 24 hours to $3.26 trillion. However, the situation was different among Status SNT holders.
The Status’ native token saw a dramatic shift in sentiments after massive gains over the past seven days.
While most tokens remained stable, Status saw its market cap plunge by 39.84% from a $251 million daily peak to $151 million at press time.
Analysts have attributed the sharp dip to profit booking, especially after Status SNT investors saw their holdings increase by 36% in the past week.
Profit-taking is a usual occurrence in the crypto sector when tokens witness swift surges.
While SNT’s prevailing slump might appear severe, it comes after a massive bullish performance that renewed interest in the altcoin.
What fueled Status SNT rally
Various factors contributed to the token’s latest surge, including speculative momentum, increased developer activity, and bullish ecosystem developments.
Status has dominated social media and crypto forums as focus remained on how its gasless features would transform Web3.
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The Ethereum L2 allows users to make free transactions within a community-governed, sustainable ecosystem.
Also, the project established a Strategic Ethereum Reserve to ensure long-term stability.
Moreover, decentralized networks like Status have seen increased traction amid security concerns associated with centralized messaging platforms.
Status is a desktop and mobile application that offers users decentralized and secure browsing and messaging.
Enhanced sentiments propelled the altcoin by 36% in the past week as traders explored the next privacy-focused rally.
Profit-booking reverses trends
SNT’s remarkable performance in the past few sessions saw short-term holders and early buyers locking in profits.
That seems understandable, considering the prevailing broad market indecisiveness.
That triggered immense sell orders that contributed to today’s massive slide.
The sudden $100 million drop in market capitalization reflects the massive wave of exits by SNT traders and investors.
Such wild retracements are usual in altcoins, especially assets with volatility-centric trading volumes and lower liquidity.
However, SNT’s case likely demonstrates a natural cooling off following massive rallies and not more about fundamentals.
Status SNT: current price outlook
The altcoin trades at $0.03746 after losing over 30% of its value in the past 24 hours.
Status’ daily trading volume has jumped by over 100% to $343 million.
That indicates massive activities from investors and traders, with many possibly exiting their SNT positions.
The altcoin exhibits substantial selling momentum, and bulls should reclaim the $0.0400 level to prevent extended price dips.
Continued bearishness could plunge SNT towards the crucial foothold at $0.03000.
The altcoin rebounded from this mark after the previous consolidation.
Status’ price will endure continued dips if it breaches the support barrier at $0.03000.
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