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.
.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.
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.”
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.
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