Lagrange enjoyed a meteoric rise after its highly anticipated airdrop and major exchange listings has quickly unraveled, as early investors rush to lock in gains.
Lagrange (LA) token dropped to $1.1345, down by 37% from its highest point this week. It has moved to its lowest level since Thursday, giving it a market capitalization of $220 million.
The ongoing sell-off came after the LA price jumped by over 500% following its airdrop and eventual listing by the biggest crypto exchanges, such as Coinbase, Binance, MEXC, Bybit, and Upbit.
Lagrange price has likely plunged as some earlier investors start to book profits. Data shows that exchange inflows have started to rise, a sign that this profit-taking is happening. These inflows rose on Friday and Saturday following two days of outflows.
It is common for a newly listed token to surge initially and then plunge as the hype fades. For example, the Official Trump (TRUMP) meme coin initially surged in January and then plunged afterward, erasing billions of dollars in value.
Lagrange’s token also dropped as interest on social media eased. Data shows that its social dominance has fallen from 1.4% on Thursday to 0.97% today, meaning that the fear of missing out among traders is fading.
Further, the decline also happened as the crypto market crash occured this week, with Bitcoin retesting the support at $100,000.
Lagrange is aiming to be a big player in the artificial intelligence industry. It is leveraging zero-knowledge proofs to secure decentralized applications. Its main product is the ZK Prover Network that generates ZK proofs for blockchain computations. Its ZK Coprocessor enables off-chain computation of large-scale data.
Lagrange price analysis
The 30-minute chart shows that the Lagrange price has crashed in the past two days. Technically, this crash happened after the token formed a double-top pattern at $1.8053.
A double-top is one of the most bearish chart patterns because it signals that investors are afraid of placing bids above that level.
Therefore, the LA token price will likely continue falling and possibly move below $1 as investors continue their profit-taking.
