Towns (TOWNS) price prediction: Whale concentrated selling triggered a sell-off, can it stop falling after a single-day 50% slump?

The community Token Towns (TOWNS) has encountered an epic dumping wave! The price has plunged from a historical high of $0.088 with a cliff-like fall of 50.79%, hitting a low of $0.035, a new historical low. As of the time of writing, there has been a slight rebound to $0.039 (a 29% rebound from the lowest point), but the market capitalization has significantly shrunk from $163 million to $86.3 million. On-chain data reveals the culprit of the big dump: Whales precisely dumped at high positions, triggering retail investors to follow suit in selling, with both Spot and futures markets seeing bearish trends. This article deeply analyzes whale movements, Spot selling pressure, futures short positions, and key support levels for the future market, revealing the risks in the cryptocurrency market behind the Token's flash crash.

Big dump trajectory: historical high cut in half, market capitalization evaporated nearly half

• Towns (TOWNS) price has experienced a catastrophic 24-48 hours:
  • All-time high: $0.088
  • **Historical Low: ** $0.035 (falling by up to 50.79%)
  • Current Price: Approximately $0.039 (up 29% from the lowest point, but down 55.68% from the high point)
• Market Capitalization Erosion: Accompanying the price crash, TOWNS market capitalization plummeted from $163 million to $86.3 million, indicating a large-scale capital outflow. Token market capitalization shrinkage has become an intuitive reflection of market panic.

The culprit emerges: Whales precisely dump at high positions, triggering a sell-off

• AMBCrypto on-chain analysis (Nansen data) reveals key timeline:
  • August 4 (Increased Position Accumulation): When the TOWNS price was at a high near $0.08, top holding addresses (Whales) actually increased their position by 3.13 billion TOWNS against the trend. This caused the total holding of top addresses to surge by 61%, reaching 10.21 billion. This operation is suspected to be an accumulation of chips for subsequent dumping.
  • August 5 (Concentrated Selling): As prices briefly surged, these Whale addresses quickly cashed out. Their exchange deposit balance skyrocketed to 525.05 million coins, an astonishing increase of 2.6 billion percent compared to the previous value, while the withdrawal amount was only 8 million coins. Whale exchange deposits are a clear Token selling signal.
• Market Impact: Whales dumped a huge amount of chips into the exchange in a short time, directly creating huge selling pressure on the market, becoming the main trigger for this round of token flash crash. The movements of crypto whales once again demonstrate their ability to influence the market.

Retail investors panic: Spot market follows suit with dumping, selling pressure like a mountain

• Whale dumping triggers market panic, retail investors join the dumping wave in the Spot market:
  • Exchange Data (Coinalyze): From August 5 to 6, over 2 billion TOWNS in Spot selling volume was recorded on the two major mainstream CEXs.
  • Net Buy/Sell Delta ( is significantly negative: The two-day data are -42 million coins and -11 million coins respectively. The continuous Spot selling pressure indicates extremely pessimistic market sentiment, a lack of long-term holding confidence, and early investors are scrambling to take profits/cut losses.

Contract Increase: Short Positions Dominate, Funding Rate Turns Negative

• Futures market participants are also bearish on the future market, actively positioning short positions:
  • Open Interest ) decreased: from $12.6 million to $10.93 million, indicating a retreat in some speculative demand.
  • Long/Short Ratio ( Imbalance: fell to 0.88, indicating that 53% of positions are short positions, with a strong bearish sentiment in the market. The short positions ratio is high.
  • Funding Rate)Funding Rate( remains negative: Current value -0.0240, predicted value -0.0227. A negative funding rate means short positions need to pay fees to long positions, which is a typical signal of strong bearish expectations in the market (expecting prices to continue falling). The negative funding rate bearish signal is clear.

Market Outlook: Key Support Level Contest, Bull-Bear Watershed Emerges

• The current market is completely dominated by short positions, with heavy selling pressure:
  • Further Downside Risk: If the current selling speed and intensity are maintained, TOWNS prices are likely to continue to drop and test the $0.034 support level. The trend of the Token's decline continues is high risk.
• Potential Rebound Conditions:
  • Buyer strength needs to significantly increase, successfully digesting the selling pressure above and reversing market sentiment.
  • If the buying pressure intervenes and successfully suppresses the selling side, the price may be expected to rebound, with the primary target challenging $0.046 resistance level. Pay attention to oversold Token rebound opportunities.

Conclusion: Whale manipulation causes bloodshed, Towns)TOWNS( big dump warning

price rise to lure buyers

• Key Lessons: Investors should closely monitor Whale wallet movements (especially large exchange deposits) and large Spot sell orders on exchanges, as these are often Token big dump warning signals. The short positions ratio in the futures market and funding rates are also important sentiment indicators.
• Current Situation: The price of TOWNS has slightly rebounded from its low, but it remains in an extremely weak position. $0.034 has become a key support level in recent times; if it is lost, it may trigger a deeper decline. Whether it can rebound to $0.046 will depend on whether there is substantial buying interest to reverse the downward trend.
• Risk Warning: Such high volatility, low market capitalization tokens (low-cap altcoins) are highly susceptible to manipulation by Whales. Retail investors should pay special attention to position management and risk control, and be wary of the flash crash risk in the Crypto Assets market. Until the trend is clear, bottom-fishing should be approached with extreme caution.