Market Signals and Selling by ‘Smart Money’
LINEA faces intensified bearish pressure as sophisticated investors, often referred to as “smart money,” divested 23.9 million tokens (approximately $598,000) on September 17, 2025, effectively liquidating nearly 85% of their holdings. This sell-off aligns with a confirmed head-and-shoulders pattern a classic bearish reversal signal projecting a downside target of $0.019, which would mark a new all-time low for the token. The Money Flow Index (MFI), a volume-weighted momentum indicator, has trended downward since early September, reflecting weak buying pressure and speculative trading despite occasional inflows from large wallets.
Key technical levels underscore the fragility of LINEA’s position. Immediate resistance lies at $0.029, a level that must be reclaimed to invalidate the bearish narrative, followed by a critical hurdle at $0.033 to restore bullish momentum. Without sustained institutional support or a technical reversal, the path of least resistance points toward a test of $0.019, emphasizing heightened downside risks for traders and liquidity providers.
Airdrop, Tokenomics, and Liquidity Challenges
LINEA’s recent struggles are exacerbated by its chaotic airdrop on September 10, 2025, which triggered a 93% price collapse within hours due to delayed retail allocations and early dumping by institutional holders. The token’s design, which unlocked a significant portion of its supply prematurely, has raised concerns about inflationary pressure and long-term viability. These issues have eroded market confidence, positioning LINEA among the worst-performing assets in the crypto market during this period.
Liquidity conditions remain precarious. While top 100 wallets accumulated 157.4 million tokens, this support has not translated into broad-based demand, as evidenced by declining trading volumes and the MFI’s failure to signal sustained buying interest. The resulting fragility increases slippage risks for large orders and amplifies volatility, particularly in a macro environment where investors await Federal Reserve policy decisions.
Broader Implications and Outlook
The convergence of smart money exits, technical breakdowns, and structural challenges highlights LINEA’s vulnerability to further declines. For traders and treasuries, the token’s performance underscores the importance of monitoring on-chain activity, volume confirmation, and key support/resistance levels. A recovery would require not only reclaiming $0.029 but also resolving underlying issues related to tokenomics and market sentiment.
In the near term, the $0.019 level represents a critical test. A breach could trigger accelerated selling, while a hold might offer a foundation for consolidation. However, without decisive institutional buy-in or positive shifts in broader market conditions, LINEA’s trajectory remains skewed toward caution.
