Question 1

Why is ACA’s price up today? (22/08/2025)

Accepted Answer

TLDR  Acala Token (ACA) rose 6.37% over the last 24h, outperforming the broader crypto market’s 5.66% gain. This aligns with its 30-day uptrend (+6.54%) but contrasts with a 2.4% weekly dip. Key drivers:

1. **Technical breakout** – Price reclaimed critical moving averages, triggering bullish momentum.  
2. **Governance momentum** – Recent voting initiatives tightened supply and boosted stakeholder engagement.  
3. **Volume surge** – 24h trading volume spiked 269%, signaling renewed liquidity interest.

## Deep Dive  
### 1. Technical Breakout (Bullish Impact)  
**Overview:** ACA rebounded from the $0.030–$0.029 support zone, closing above its 7-day SMA ($0.0308) and 30-day SMA ($0.0292). The MACD histogram turned positive (+0.000148), and RSI-14 (51) suggests room for further upside.

**What this means:** Breaking above key SMAs often attracts algorithmic traders and signals a shift in short-term sentiment. The MACD crossover hints at accelerating bullish momentum, though the 200-day SMA ($0.035) remains a critical resistance level.

**What to look out for:** A sustained close above $0.033 (23.6% Fibonacci retracement) could target $0.034–$0.035.

### 2. Governance Activity (Mixed Impact)  
**Overview:** Voting for Acala’s Ambassador Program V3 ([Acala Network](https://x.com/AcalaNetwork/status/1953442072662327584)) and LDOT validator elections concluded on August 7, requiring ACA holders to stake tokens to participate.

**What this means:** Governance participation typically reduces exchange supply (tokens locked for voting), creating upward pressure. However, these events concluded 15 days ago, suggesting their impact may be fading. Recent roadmap updates (August 20) could renew speculative interest.

### 3. Liquidity Surge (Bullish Impact)  
**Overview:** ACA’s 24h volume surged to $33M (+269%), with turnover (volume/market cap) at 0.89 – indicating high liquidity absorption.

**What this means:** Elevated turnover reduces slippage, attracting short-term traders. The spike coincides with Binance’s expanded ACA liquidity pools, per June 2025 data, though recent CEX updates aren’t confirmed.

## Conclusion  
ACA’s rally reflects technical momentum amplified by governance-driven supply constraints and opportunistic trading. While bullish signals dominate, the 200-day SMA ($0.035) and fading governance catalysts pose near-term risks.

**Key watch:** Can ACA hold above $0.032 (50% Fibonacci level) amid cooling volume?

Question 2

Why is ACA’s price down today? (21/08/2025)

Accepted Answer

TLDR  Acala Token (ACA) fell 5.6% over the past 24h, underperforming the broader crypto market (-1.79%). The drop reverses part of its 6.23% weekly gain, likely driven by three factors:

1. **Technical pullback** – Failed to hold $0.032 support, triggering sell-offs  
2. **Altcoin weakness** – Bitcoin dominance rose to 58.7%, pressuring smaller cryptos  
3. **Liquidity crunch** – Trading volume plunged 47% to $9.5M, amplifying volatility

## Deep Dive  
### 1. Technical Breakdown (Bearish Impact)  
**Overview:** ACA broke below the critical $0.032 support level identified in recent analyses ([CMC Community](https://coinmarketcap.com/community/post/367109051)), slipping under its 7-day SMA ($0.0305). The RSI14 cooled from 58.99 to 56.96, signaling weakening momentum.

**What this means:** Traders who entered near $0.032 likely liquidated positions as prices dipped below this psychological threshold. The MACD histogram (+0.00027) remains positive but shows fading bullish divergence, suggesting short-term traders are taking profits.

**What to watch:** Whether ACA stabilizes above the Fibonacci 78.6% retracement level ($0.02824) – a breach could target $0.0258 (2025 low).

### 2. Altcoin Sentiment Shift (Mixed Impact)  
**Overview:** Bitcoin’s dominance climbed to 58.7% (up 0.62% in 24h), while the Altcoin Season Index fell 23.6% monthly. ACA’s 24h drop outpaced mid-cap peers, reflecting risk-off rotation.

**What this means:** Investors are favoring Bitcoin amid neutral market sentiment (Fear & Greed Index: 50). ACA’s correlation with DOT (-6.1% weekly) and Polkadot ecosystem tokens magnified the sell-off.

### 3. Liquidity Drain (Bearish Impact)  
**Overview:** ACA’s 24h volume crashed 47% to $9.5M, with turnover (volume/market cap) at 0.27 – below the 0.4 threshold for healthy liquidity.

**What this means:** Thin order books allowed moderate sell orders to disproportionately impact prices. The volume decline coincides with reduced social traction – ACA-related tweets dropped 38% week-over-week.

## Conclusion  
ACA’s drop reflects profit-taking after recent gains, compounded by sector-wide altcoin outflows and deteriorating liquidity. While network developments like the [updated roadmap](https://x.com/AcalaNetwork/status/1958068409461084654) (20 Aug) provide long-term value, short-term traders appear cautious.

**Key watch:** Can ACA defend $0.02824 Fibonacci support alongside Polkadot’s upcoming Parachain Auction updates?

Latest Acala Token (ACA) Price Analysis

Why is ACA’s price up today? (22/08/2025)

Deep Dive

1. Technical Breakout (Bullish Impact)

2. Governance Activity (Mixed Impact)

3. Liquidity Surge (Bullish Impact)

Conclusion

Why is ACA’s price down today? (21/08/2025)

Deep Dive

1. Technical Breakdown (Bearish Impact)

2. Altcoin Sentiment Shift (Mixed Impact)

3. Liquidity Drain (Bearish Impact)

Conclusion