Deep Dive
1. Technical Breakdown (Bearish Impact)
Overview: TLOS trades at $0.0541, below its 7-day SMA ($0.057) and 30-day SMA ($0.059). The RSI-7 (30.12) indicates oversold conditions, while the MACD histogram (-0.001076) confirms bearish momentum.
What this means: Traders may interpret the price below key moving averages as a signal to exit positions, exacerbating downward pressure. The oversold RSI could hint at a near-term bounce, but sustained recovery would require reclaiming the $0.057 resistance level.
What to watch: A close above the 7-day SMA ($0.057) or a bullish MACD crossover.
2. Liquidity Incentive Challenges (Mixed Impact)
Overview: Telos’ Uniswap liquidity pools saw only 55–86% of incentives distributed in May–July 2025 due to unmet KPIs (Uniswap Governance). While stablecoin pools hit 100% rewards, volatile pairs like STLOS/WTLOS underperformed.
What this means: Lower rewards for liquidity providers (LPs) reduce participation, thinning liquidity and increasing price volatility. However, Telos’ pivot toward fixed incentives (proposed in August) could stabilize LP activity if implemented.
3. Deflationary Transition (Bullish Long-Term, Bearish Short-Term)
Overview: Telos burned 35,000 TLOS in July as part of its “ultra sound money” strategy to curb inflation. The network aims for net deflation via transaction fees and reduced emissions (Telos Foundation).
What this means: While burns theoretically support long-term scarcity, short-term uncertainty persists. The 24h drop suggests traders may be pricing in execution risks, such as slower-than-expected adoption of fee-based deflation mechanisms.
Conclusion
The 24h dip reflects technical exhaustion, liquidity incentive hiccups, and cautious sentiment around Telos’ deflationary overhaul. While the project’s long-term vision aligns with sustainable tokenomics, near-term volatility may persist until liquidity incentives stabilize and deflationary mechanisms gain traction.
Key watch: Can TLOS hold the 61.8% Fibonacci support ($0.0603) amid broader altcoin season momentum?