KEYTAKEAWAYS
- AUCTION surged from $12 to $68 due to AI hype, then crashed to $20 within days after whale dumping.
- On-chain data shows whales sold 1.66 million tokens, causing panic selling and price collapse.
- Similar past crashes in REEF and AKRO warn of risks in small-cap, hype-driven tokens.
CONTENT
As of March 24, 2025, the cryptocurrency AUCTION (the native token of Bounce Finance) is still experiencing sharp volatility. Its price has dropped further to $20, down more than 58% from the $47–$48 range just yesterday.
This dramatic drop, following a rapid price surge, made AUCTION one of the most discussed small-cap tokens in the crypto market this week. Investors are now questioning market manipulation, risk control, and the real value behind the project.
FROM LOW TO PEAK: THE “AI + DEFI” NARRATIVE
AUCTION is the main token of Bounce Finance, a decentralized auction platform. In early March 2025, AUCTION started rising due to the launch of a new feature called the AI Agent Launchpad. This added an “AI + DeFi” story to the project, bringing attention and excitement.
Starting from $12 in early March, the price steadily increased. On-chain data shows that from February 23 to March 16, several wallets withdrew around 2 million AUCTION tokens from Binance, which was over 26% of the circulating supply. This buying activity pushed the price to $26.
Later, as Fear of Missing Out (FOMO) spread, the token price jumped quickly. On March 22, it broke $45, and in the early hours of March 23, it reached $68, a gain of around 470% in just three weeks. Social media was filled with people saying “AUCTION will hit $100.”
But the excitement didn’t last. Within hours, the price crashed below $40, dropping over 58%. Later that night, it briefly recovered to $47–$48, but today, March 24, the price continued to fall, now sitting at $20.
THE CRASH: WHALE DUMPING AND PANIC SELLING
The crash was mainly caused by large holders (whales) selling off their tokens. On-chain data shows that around 1.66 million AUCTION tokens (worth tens of millions of dollars) were sent to centralized exchanges early on March 23. This was over 25% of the circulating supply.
These tokens were quickly sold, triggering panic among retail investors. As more people rushed to sell, the price dropped further. Now, even at $20, selling pressure remains high. Analysts believe that some whales may still be offloading tokens or even trying to cause more panic to buy back at lower prices.
This isn’t the first time AUCTION has had a big boom and bust. In the 2021 bull market, it rose from $50 to $90 and then crashed below $10. That past pattern looks very similar to what is happening now.
TECHNICAL BREAKDOWN AND MARKET MOOD: FROM HYPE TO DISAPPOINTMENT
Looking at technical analysis, AUCTION’s price fell below important support levels like the 55-day and 50-day exponential moving averages. After breaking below $40 and then the $30–$35 range, the price is now at $20, near the original starting point in early March.
If the $20 level doesn’t hold, the next support may be around $15–$18, or even lower. The short-term gains are almost fully gone.
Market sentiment has also changed fast. Yesterday, people on social media were talking about buying the dip. Today, many express regret, fear, and doubt. Some say “the whales are gone, and retail is stuck” or “AUCTION is finished.”
THE PLAYBOOK BEHIND THE PRICE ACTION: A FULL WHALE CYCLE
Looking at wallet activity and market behavior, AUCTION followed a very clear whale manipulation pattern:
Accumulation phase (Late February to mid-March):
Large holders bought about 2 million AUCTION tokens between $12 and $26, gaining control of 25%–30% of the circulating supply.
Pump phase (Mid-March to early March 23):
They pushed the price up using the AI + DeFi narrative and created hype on social media. The price rose to $68.
Dump phase (March 23 to now):
They sent 1.66 million tokens to exchanges and sold, causing a massive crash. Retail investors panicked and sold as well.
Because AUCTION has low supply — only 6.59 million tokens in circulation, with 7.64 million total — and a small market cap (now about $132 million), it is easy to control. Small-cap tokens like this are often the targets of price manipulation.
AUCTION’s story is not new. Similar things happened before with other small-cap tokens:
KEY LESSONS FOR INVESTORS
Small-cap tokens are very risky.
Low supply and high holder concentration mean price can be easily moved by a few big wallets.
On-chain data helps spot danger early.
Watching big token transfers and exchange deposits can help you avoid buying at the top.
Narratives can be misleading.
“Artificial Intelligence” and “Decentralized Finance” may sound promising, but without real progress, it can just be marketing.
Risk control is more important than chasing profits.
In a volatile market, surviving bad trades is more important than winning big on one.
From $12 to $68, and now back to $20, AUCTION’s price action in just a few days shows how quickly greed turns into fear in crypto.
Whales made big profits, while many retail investors were left with heavy losses. Whether AUCTION can recover or not is still unknown. But for all investors, understanding these patterns and protecting your capital is more important than following hype.
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