Date: Tue, May 06, 2025 | 12:10 PM GMT
The crypto market has witnessed yet another abrupt dump—this time with Solayer (LAYER), the native token of the Solayer restaking ecosystem. Much like the recent crash in Mantra (OM) , LAYER has tumbled sharply, leaving traders stunned.
In the last few hours alone, LAYER has plummeted by a staggering 38%, wiping out a good portion of its recent gains. Just weeks ago, the token was rallying impressively, surging over 155% from its April 8th low.
Solayer (LAYER) Daily Chart/Coinsprobe (Source: Tradingview) .However, today’s crash brought it crashing back to the $1.82 zone, which aligns with both the 50-day moving average, ascending channel and a key horizontal support. If this level fails to hold, the next potential support lies around $1.33.
Token Unlocks Incoming
One of the main concerns weighing on LAYER is the upcoming token unlock event. According to the Tokenomist , on May 11, the Solayer team is set to unlock 27.02 million LAYER tokens, worth approximately $53 million—about 12.87% of the circulating supply.
Solayer Token Unlocks Data/Source: Tokenomist With such a significant portion entering circulation, fears of increased selling pressure have likely contributed to today’s sell-off.
Is It Market Manipulation?
While it’s hard to definitively call any event “manipulation,” some in the community are raising eyebrows. Notably, crypto trader @VivanLive had predicted this very scenario back on April 11. In his post, he wrote:
“Probably the next $OM.
This price action looks super manipulated to me.
Big unlock coming on 11th May.”
LAYER Token Chart/Source: @VivanLive (X) Looking at the chart, the timing and magnitude of the drop just days before the unlock have led to suspicions. The price fell out of a clear ascending channel, triggering a steep correction—possibly by insiders anticipating the unlock.
Final Thoughts
Whether today’s dump was a natural correction ahead of a known unlock or something more coordinated remains a topic of debate. For now, traders are keeping a close watch on whether LAYER can hold the $1.82 level or if further downside is in store.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
