LINEA Price Struggles After 50% Crash, But Recovery Signals Emerge

LINEA's value has plummeted nearly 50% since its debut, crashing from a post-launch high of $0.046 to around $0.023 in less than 24 hours. This brutal selloff screams of panic selling from airdrop recipients dumping their free tokens—a classic case of "take the money and run" that we see all too often in crypto launches. Yet beneath this bloodbath, I'm spotting signs that suggest this might not be the end of the story.

A Market Divided: Buyers vs Sellers

Looking at the 15-minute chart, it's fascinating to see the Chaikin Money Flow staying above zero despite the price collapse. This tells me there are actually buyers stepping in—perhaps whales or smart money—quietly accumulating while retail panic sells.

The Money Flow Index shows sellers initially dominated, pushing prices down hard, but now it's flattening. Classic sign of selling pressure exhaustion. I've seen this pattern before—usually right before a bounce.

What's truly revealing is the leverage situation: $72 million in longs versus $67 million in shorts. The market's perfectly divided on where LINEA goes next. This standoff creates two critical price points: $0.019 (where long positions get crushed) and $0.028 (where shorts get destroyed).

Technical Signals Point to Potential Reversal

The 1-hour perpetual chart reveals something potentially significant: a bullish divergence between price and RSI. The price made a lower low, but the RSI formed a higher low—a classic sign that selling momentum is weakening.

If buyers regain control, we're looking at resistance levels at $0.026, then the short-liquidation zone at $0.028, and potentially $0.032 if momentum builds.

But let's not get ahead of ourselves. Support at $0.022 is critical—it's where the post-launch dump found its floor. If that breaks, we're likely heading to $0.019 where massive liquidations could trigger a cascade of forced selling.

This kind of volatility after a major token launch is why I find centralized exchanges so problematic. They list these tokens knowing full well that airdrop recipients will dump immediately, creating this rollercoaster for traders. The whole setup feels designed to generate fees through volatility rather than supporting genuine price discovery.

At this point, LINEA sits at a crossroads—technical signals suggest recovery potential, but sentiment remains fragile. The next 24-48 hours should determine whether we've seen the bottom or if another leg down awaits.