Question 1

Why is MUSE’s price down today? (23/07/2025)

Accepted Answer

## TLDR  
Muse (MUSE) fell 9.96% in 24 hours due to profit-taking after a 20.8% weekly rally, overbought technicals, and thin liquidity amplifying sell pressure.  
1. **Overheated momentum** – RSI7 hit 92.8 (extreme overbought) before correction  
2. **Whale dominance** – Top 10 holders control 75.5% of supply, raising volatility risks  
3. **Market rotation** – Bitcoin dominance rose to 60.23% in 24h, pressuring alts

## Deep Dive  
### 1. Technical context  
The 24h drop follows a 20.8% weekly surge that pushed MUSE into extreme overbought territory:  
- **RSI7** spiked to 92.8 (highest since July 2025 data), far above the 70 “overbought” threshold  
- Price rejected at $12.57 swing high (July 2025 peak), now testing $9.51 Fibonacci 50% retracement level  
- MACD histogram flipped positive (+0.223) but divergence between MACD/signal lines suggests weakening momentum

Thin liquidity (24h volume down 34.9% to $1.63M) likely amplified the sell-off.

### 2. Market dynamics  
Altcoins faced headwinds as Bitcoin dominance rose 0.55% to 60.23% in 24h:  
- Traders rotated into BTC amid flat total crypto market cap (-0.53%)  
- Fear & Greed Index held at 70 (“Greed”), typically a contrarian sell signal for overextended assets  
- MUSE’s 30d +37% gain outpaced the crypto market’s +26.5%, inviting profit-taking

### 3. Supporting factors  
Concentrated ownership raises volatility risks:  
- 75.5% supply held by top 10 wallets ([CoinMarketCap](https://coinmarketcap.com))  
- Turnover ratio of 0.337 signals low liquidity relative to market cap, magnifying price swings  
- No fresh bullish catalysts since July 1 node investment news ([SAG3_ai](https://x.com/SAG3_ai/status/1940036422418759853))

## Conclusion  
MUSE’s drop reflects a healthy correction after parabolic gains, exacerbated by whale-heavy ownership and sector rotation into Bitcoin. Watch the $9.51 Fibonacci level – a sustained break could target the 200-day EMA ($8.4). **Could renewed altcoin momentum reverse the selloff if Bitcoin dominance stalls?**

Question 2

Why is MUSE’s price up today? (22/07/2025)

Accepted Answer

## TLDR  
Muse (MUSE) surged 28% in 24 hours due to bullish technical momentum and renewed interest in its node infrastructure despite limited fresh catalysts.  
1. **Overbought RSI (92.67)** signals extreme short-term buying pressure  
2. **1,398% 24h volume spike** suggests speculative trading activity  
3. **$10M node investment news** (1 July) resurfaced, highlighting zkEVM scaling potential

## Deep Dive  
### 1. Technical context  
The price broke above key technical levels:  
- **RSI-7** at 92.67 (most overbought since 1 July 2025)  
- **MACD histogram** bullish at +0.19467, highest since June  
- Trading above all major moving averages (7-day SMA: $8.45, 30-day EMA: $7.96)

This technical breakout likely triggered algorithmic buying and stop-loss cascades. However, the 23.6% Fibonacci retracement level at $10.32 now acts as near-term support.

### 2. Market dynamics  
MUSE’s rally diverged from broader trends:  
- **BTC dominance rose 0.3% to 60.28%** yesterday, typically headwind for alts  
- **Altcoin season index** dipped 14.55% in 24h to 47 (neutral zone)  
- High **turnover ratio (0.454)** indicates thin liquidity amplifying moves

The token’s $5.6M market cap makes it susceptible to whale activity – top 10 addresses control 75.91% of supply ([IntoTheBlock](https://www.intotheblock.com/)).

## Conclusion  
MUSE’s surge appears driven by technical factors and recycled node investment narratives rather than new catalysts. Watch whether the price holds above the $10.32 Fibonacci level as RSI cools. Could this liquidity-driven pump sustain if BTC dominance keeps climbing?

Latest Muse (MUSE) Price Analysis

Why is MUSE’s price down today? (23/07/2025)

TLDR

Deep Dive

1. Technical context

2. Market dynamics

3. Supporting factors