Deep Dive
1. Post-Pump Correction (Bearish Impact)
Overview: ALU surged 57% on August 18 after launching a $1M Web3 gaming grant fund (CoinMarketCap), but gains reversed as traders locked in profits. The 24h trading volume dropped 13.44% to $3.56M, signaling fading momentum.
What this means: Short-term traders often exit after parabolic moves, especially in low-liquidity assets like ALU (turnover ratio: 0.165). The lack of follow-through buying exacerbated the sell-off.
What to look out for: Sustained volume above $5M/day to confirm renewed interest.
2. Security Overhang (Bearish Impact)
Overview: A July 2025 exploit by a former engineer led to 150M ALU tokens (~$3.27M at current prices) being minted and dumped (Altura Report). While new leadership under Kuvi Labs aims to recover funds, uncertainty persists.
What this means: The incident damaged trust in ALU’s tokenomics. Until resolved, it creates persistent sell pressure from cautious holders and legal complexities.
What to look out for: Updates from Kuvi Labs’ August 17 AMA on fund recovery efforts.
3. Technical Resistance (Mixed Impact)
Overview: ALU faces resistance at its 30-day SMA ($0.0273) and pivot point ($0.0229). The RSI (46.93) shows neutral momentum, while the MACD histogram hints at bullish divergence but remains below zero.
What this means: Bulls need a close above $0.0229 to signal a reversal. Failure could retest support at $0.0168 (June 2025 low).
Conclusion
The drop reflects a mix of profit-taking, unresolved security risks, and weak technicals. While ALU’s Web3 gaming focus offers long-term potential, short-term sentiment hinges on Kuvi Labs’ transparency and market-wide risk appetite.
Key watch: Can ALU hold $0.0208 (7-day SMA) to prevent deeper losses?