AUCTION big pump big dump review: Whale game from $68 to $20
On March 24, 2025, cryptocurrency AUCTION The native token of Bounce Finance is still in the aftermath of the volatile market. Yesterday, the token plummeted from a high of $68 in the early morning to $40, with a 24-hour drop of over 58%. Today, the price further dropped to $20, a decrease of about 57% compared to the $47-48 range last night. This market frenzy from highs to lows not only made AUCTION the most watched ‘small-cap coin’ of the week, but also triggered a profound reflection on trading logic and market risks. Is this a short-term adjustment, or the beginning of a long winter after the whales have harvested? Let’s review the whole process of this fluctuation through on-chain data, market dynamics, and technical analysis.
One, from the low point to yesterday’s peak
AUCTION is the core token of the decentralized auction platform Bounce Finance. Recently, it has been sought after due to the launch of the ‘AI Agent Launchpad’ function. The narrative of AI + DeFi provides fundamental support for its rise. Starting from $12 in early March, AUCTION steadily climbed in three weeks. On-chain data shows that from February 23 to March 16, several related addresses withdrew about 2 million AUCTION tokens from exchanges (accounting for over 26% of the circulation), driving the price from $12 to $26. Subsequently, FOMO (fear of missing out) sentiment took over the market, with the price breaking through $45 on March 22 and reaching $68 in the early hours of March 23, with a surge of up to 470%.
Yesterday’s high was the peak of speculative frenzy, with voices on social media constantly talking about AUCTION breaking a hundred. However, after the peak came a cliff-like fall, with the price holding at $68 for only a few hours before quickly plummeting to below $40, a drop of over 58% at one point. By the evening of the 23rd, the price briefly stabilized in the $47-48 range, but the continued fall today (24th) indicates that the market is far from reaching the bottom.
The truth about the crash: big players selling off and exacerbating panic
Yesterday’s violent fluctuations were caused by big players’ manipulation. On-chain data shows that in the early morning of March 23, about 1.66 million AUCTION tokens (worth tens of millions of dollars) flowed from multiple wallets to centralized exchanges, followed by concentrated selling. These tokens accounted for more than 25% of the circulation, directly causing the price to plummet from $68 to below $40. The selling triggered panic among retail investors, further exacerbating the decline.
Today’s price has fallen to $20, showing that the selling pressure has not subsided. Analysis on X indicates that from the night of the 23rd to the 24th, there may be another large amount of tokens flowing into the exchange, or the chain reaction of panic selling yesterday has led to consecutive support levels being breached. AUCTION’s history is not without precedent: at the end of the bull market in 2021, its price also rose from $50 to $90 in a short period of time, then crashed to below $10. The trend from yesterday to today is highly similar to the ‘pump and dump’ pattern back then.
Three, technical and emotional turning points: from frenzy to low ebb
From a technical perspective, yesterday’s high of $68 failed to hold, falling below key support levels (the $55 and $50 EMA lines). After hitting a low of $40, the price briefly rebounded to $47-48, but today it further dropped below the $40 and $30-35 support levels, down to the current $20. This level is close to the starting point in early March, indicating that almost all of the short-term gains have been retraced. If the $20 level is breached, the next support may be at $15-18, or even back to single digits.
The market sentiment has deteriorated sharply. Discussions of ‘buying the dip opportunity’ were still present on platform X yesterday, but today it is filled with disappointment and doubt: ‘Whales have left, retail investors are left holding the bag’,’AUCTION is cooling off’. The overall cryptocurrency market is sluggish, with Bitcoin hovering around $80,000, altcoins are generally under pressure, and AUCTION’s big dump has become an outlet for emotions.
Four, the mystery of the trading logic revealed: the complete cycle of pulling up and smashing down
Based on on-chain data and the performance over the past two days, this fluctuation is a typical ‘pump and dump’ operation: -
Accumulation in the early stage (late February to mid-March):Whales accumulated about 2 million AUCTION tokens in the $12-26 range, controlling 25%-30% of the circulation.
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Pump lure (mid-March to early morning on the 23rd) With the help of AI + DeFi narrative and FOMO, the price was raised to $68, attracting retail investors to take over.
Concentrated shipment (from the early morning of the 23rd to the 24th): Selling 1.66 million tokens first triggered a big dump, followed by continued selling pressure pushing the price down to $20.
The circulation of AUCTION is relatively small (about 6.59 million coins, total supply of 7.64 million coins), and the market value has shrunk to about 132 million US dollars. This ‘small-cap coin’ characteristic makes it extremely easy to manipulate, while the dispersed holdings of retail investors are difficult to form effective resistance. Today’s sharp drop in price indicates that large holders may not have completely exited, or are creating panic at low levels to further attract funds.
Fundamentals and Speculation: The Dual Destiny of AUCTION
Although manipulation dominates the short-term market, the fundamentals of AUCTION still have potential. Bounce Finance’s ‘AI Agent Launchpad’ attempts to integrate artificial intelligence into the auction mechanism, which may find breakthroughs in the NFT or token issuance field. However, the current price is more driven by speculation, and the fundamentals have not yet translated into actual demand. After falling to $20 today, it is crucial for the project team to respond (such as clarifying large holders’ sell-off or releasing new developments).
From a broader perspective, the rise and fall of AUCTION is a microcosm of the cyclical features of the cryptocurrency market: hot narratives ignite enthusiasm, Whale funds fuel the fire, and retail investors bear the cost of chasing pumps and dumps. This pattern is particularly prominent in ‘small-cap coins,’ especially when the market lacks overall direction.
Six, today’s observations and future prospects
As of March 24th, the AUCTION price is
20 US dollars The trading volume has shrunk compared to yesterday, indicating that panic selling may be coming to an end. However, the current level remains unstable. In the short term, $20 is a key psychological barrier. If held, a technical rebound to $25-30 may occur; if breached, $15-18 will be the next target. In the medium to long term, whether large holders continue to sell off, and whether the project eco can deliver on AI narratives, will determine whether it can emerge from the trough.
Insights for Investors
- Extreme risk of small-cap coins: Tokens with low circulation and high concentration fluctuate sharply, making it easy for retail investors to become ‘bottom fishers’.
- The warning function of on-chain signals: Large transfers and changes in exchange balances are signs of manipulation, real-time monitoring can avoid chasing highs and killing falls.
- The disconnect between narrative and reality Hotspots such as AI + DeFi have potential, but short-term speculation often masks risks, requiring rational judgment.
From $12 in early March to $68 on the 23rd, and now $20 today, AUCTION has interpreted the greed and fear of the crypto market in just two days. Yesterday’s big dump was a whale’s feast, and today’s slump is a reflection for retail investors. In this world full of speculation and gaming, AUCTION may still have a chance to turn the tide, but for investors, insight into trading logic and risk management are more important than chasing hotspots.
