Massive Token Transfer (Supply Shock)
A major reason for the downward pressure and extreme volatility is a significant movement of tokens by the project's foundation.
40 Million LA Tokens Transferred: Roughly 40 million tokens from the LA Project Foundation and Ecosystem's unlocked allocation were recently moved to multiple exchanges.
Market Impact: Large transfers to exchanges are typically viewed as a "sell signal" or preparation for liquidation, which increases sell-side pressure and causes the price to drop.
2. Extreme Market Volatility
The price of LA is "hitting" low levels as part of a wider crypto market correction.
Broad Market Sell-off: The total crypto market cap recently fell by over 5% in 24 hours due to "extreme fear" among investors.
Altcoin Underperformance: During these periods, high-risk altcoins like LA often drop faster than Bitcoin as capital rotates into safer assets.
3. Technical Breakdown (From your Screenshot)
Your chart shows the immediate aftermath of a sharp price rejection.
Rejection at Resistance: The yellow line on your chart shows a steep drop right after touching the MA60 (0.2800) level. This indicates that sellers stepped in heavily at that price point to prevent a further breakout.
Bearish Indicators: The large red volume bar at the bottom (around 06:36) indicates a "sell-off" event. Additionally, the 200-day moving average for LA has been sloping down since late January, suggesting the long-term trend remains weak.
Summary of the Risk
The Risk Warning displayed directly on your screen is the most critical factor:
"On-chain data indicates that 40 mil tokens... were transferred to multiple exchanges... Please take note of higher price volatility risk."
