- BABY price crashed 98% in 24 hours, triggering panic selling and wiping out liquidity.
- Short-term support forms near $0.0015, but downside risks remain if it breaks.
- RSI above 50 and MACD crossover signal potential short-term recovery ahead.
BabySwap’s native token, BABY, saw an extreme price collapse on April 12, shaking investor confidence overnight. The token dropped over 98% in 24 hours, plunging from nearly $0.08143 to $0.001575. This massive decline appeared to result from a swift sell-off, possibly by a whale or a group of large holders.
The price chart displayed no gradual pullback or recovery phase. Instead, it reflected a steep, vertical fall, followed by stabilization at the new low. This sudden collapse raises concerns about liquidity, future recovery, and overall market sentiment surrounding the project.
Massive Drop Signals Panic Selling and Vanishing Liquidity
The scale and speed of the decline suggest a panic-induced dump rather than steady market pressure. Liquidity dried up almost instantly. Trading volume fell over 99.97% in the same timeframe, highlighting how quickly market interest vanished.
Moreover, BabySwap’s market cap dropped to under $1 million, signaling extremely high volatility and increasing investor risk. Despite this, its Total Value Locked (TVL) still stands at $1.99 million, significantly higher than the market cap. This could suggest that some value remains locked in the ecosystem, which may offer hope for a rebalancing effort.
Support and Resistance Levels Define the Path Forward
Following the plunge, the price found temporary support at $0.0015. This level has now become the main area of short-term stability. If it fails to hold, further downside could follow as the token enters uncharted price territory.
Resistance, on the other hand, stands far above at $0.0814 the level before the crash. A recovery to that range would require a monumental move of over 5000%, making it highly unlikely in the short term. Hence, the current range between these levels becomes crucial in shaping near-term price action.
Technical Indicators Hint at Short-Term Recovery Signs
Despite the brutal collapse, some technical metrics offer a glimmer of optimism. The Relative Strength Index (RSI) moved above 50, currently sitting at 53.06. This signals a possible short-term bullish reversal.
Besides, the RSI previously bounced from below 40, indicating potential accumulation by speculative traders. The MACD further confirms a shift in momentum. A crossover has occurred, with the histogram turning positive and rising.
