Large red candles usually appear when heavy selling pressure enters the market suddenly. In this case, $XAU likely dropped due to a mix of factors such as profit booking after recent highs, strong US dollar movement, interest rate expectations, or institutional sell orders. When big players close long positions or open large shorts, liquidity gets absorbed quickly, creating sharp downward candles. Liquidations in leveraged futures can also accelerate the drop, causing cascade selling. This does not always mean a full market crash; sometimes it is a correction or liquidity sweep. Traders should watch support levels and volume behavior to confirm whether continuation or recovery follows.
XAUUSDT
Perp
4,904.92
-3.51%