Key Highlights
- ANSEM falls nearly 25% as traders take profits after its 200% rally.
- Long liquidations around $15k and the KuCoin listing added to selling pressure.
- Technical indicators remain bearish, with support at $0.1831 and RSI showing a neutral market.
The Black Bull (ANSEM) token saw a massive drop on July 10, wiping out part of the huge gains it made earlier this week.
According to data from CoinMarketCap, the Solana-based memecoin was trading around $0.21, down nearly 25% in the last 24 hours. Trading activity has increased to about 96% over the same period to around $99.75 million. But compared with the price drop, these figures are just traders selling their position.
What is pulling ANSEM price down
So far, there seems to be no outage or a hack on the memecoin. This seems to be a standard market correction and profit-taking following a massive, rapid rally.
The token had previously surged more than 200% just a few days ago, which made it one of the crypto market’s biggest gainers this month at the time. The rally pushed the token to an all-time high of about $0.44 and briefly lifted its market value to around $447 million.
However, the excitement did not last. Traders now seem to be taking their profit after a long bullish run.
And when a token rises this quickly, many early buyers choose to sell and secure their profits instead of waiting for higher prices. That wave of selling put immediate pressure on the token and started the pullback.
Long liquidations add more selling pressure
Aside from that, the decline was made worse by activity in the derivatives market. Funding rates had climbed as many traders placed bullish bets expecting the rally to continue.
When prices started falling, those leveraged long positions were liquidated, which added more selling pressure and accelerated the decline. According to data from Coinglass, about $13.91k was liquidated from the market within the last 24 hours. This is a high percentage of the total liquidation which was around $15.13k.
Charts show bears are taking control
Meanwhile, the chart on the hourly timeframe shows that the price broke below an ascending trendline that had supported the rally since June. It also completed a Head and Shoulders pattern on the four-hour chart, a chart pattern that traders often see as a sign that a strong uptrend may be coming to an end.
In addition, the token is now trading below its 20-day, 50-day, 100-day and 200-day exponential moving averages (EMAs).
Usually, when the price sits below these key levels, they often act as resistance, meaning ANSEM would need to climb back above them before traders begin to see signs of a stronger recovery.
If buyers step back into the market and ANSEM holds support around $0.1831, the token could begin to recover from the sell-off back up to the nearest resistance which is at $0.250000. However, if selling pressure continues and ANSEM loses this support, the downtrend could deepen.
Moreover, the Relative Strength Index (RSI) is currently at 50, which suggests that the market is neutral. This is because the market is back at the initial base on the first rally. In short, traders are now waiting for what happens next.
KuCoin listing fails to keep the rally alive
The token also failed to receive lasting support from a major exchange listing. KuCoin exchange officially launched ANSEM/USDT trading today after opening deposits on the Solana network.
In its announcement on X, the exchange described the project as, “The Black Bull ($ANSEM) is a transparent, community-driven memecoin on Solana built around one creed: charge forward no matter what.”
However, instead of attracting enough new buyers to support the price, the listing gave many early investors another way to cash out, adding more selling pressure.
Also Read: LAB Burns 1% of Token Supply After 90% Price Collapse
