Home / Analysis / Crypto / Technical Analysis / Bitcoin-Powered Token CORE Crashes 51% as Team Says ‘It Was Planned’ — Why That Answer Is More Complicated Than It Sounds
$CORE crashes 51% to an all-time low of $0.032 amid a 'forced' liquidation | Credit: Hameem Sarwar
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Key Takeaways
CORE’s price plummeted 51%, triggered by a liquidation event on the Colend lending protocol.
Trading volume exploded to $130 million, nearly 3.8 times the token’s entire $34 million market cap.
The RSI has collapsed to an oversold level, while the AO remains negative, indicating seller exhaustion.
CORE, native to the Bitcoin-based protocol, has seen its price crash by 51% today.
As a result, the CORE crypto price plummeted from $0.065 to $0.032 within a few hours.
Following the collapse, the project’s development team published an official statement on X attributing the crash directly to an unexpected result.
Here is a rundown of all that happened, and what could be next for CORE’s price.
What the Core DAO Team Said
At press time, the event had pushed the CORE crypto price to an all-time low. Notably, the altcoin is now 99% down from its all-time high of three years ago.
Meanwhile, the official Core DAO statement on X has identified the primary cause of the price collapse.
“A series of large market sells triggered a rapid liquidation cascade on Colend, placing significant acute downward pressure on CORE,” The team disclosed.
Specifically, the team explained that the transition has placed a massive volume of CORE tokens and delegated Bitcoin hash power into a temporary unbonding state.
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That unbonding is not discretionary. It is a mandatory technical consequence of validators realigning resources to comply with the updated consensus architecture.
The team further explained that the unbonding state created two simultaneous market distortions.
First, the apparent reduction in Total Value Locked (TVL) generated a perception of capital flight that external market participants could not immediately distinguish from genuine distribution.
Second, the temporary increase in liquid token supply reduced the scarcity signal that had previously underpinned CORE’s price support.
“The Colend protocol operated in line with its design, and positions below required collateral thresholds were liquidated. The cascade has largely played out, with the vast majority of positions cleared and limited residual exposure remaining in the system. This was a market-driven event,” It added.
Critically, the Core DAO team framed the entire event as a shakeout, adding that it is working to resolve it.
Complications Arise
However, other data points as of today complicate a clean acceptance of the purely mechanical framing.
The most alarming is the volume-to-market cap ratio.
Over the past 24 hours, the CORE crypto crash sent trading volume soaring by 2836%.
As a result, the volume spiked to $130 million, against a $34 million market capitalisation.
This means that more than 380% of the token’s entire supply effectively changed hands within 24 hours.
That ratio is not a signature of an orderly technical migration being absorbed by patient long-term holders. It is the signature of a liquidity flush — a panic event in which forced sellers, liquidation cascades, and algorithmic stop-loss triggers collectively overwhelm whatever natural demand exists at any price level.
Should this trend fail to change, the CORE crypto crash could extend beyond the recent decline.
CORE Price Prediction: No Direction Yet
However, the technical perspective provides more insight. CORE’s price is in freefall, and the indicators are screaming capitulation
On the daily chart, CORE trades at $0.03 and is pressing into territory the altcoin has never visited before.
The descent has been relentless. From highs near $0.54, CORE has shed over 94% across a perfectly structured descending channel that has rejected every recovery attempt since August 2025.
Both EMAs hang far overhead: the 20 EMA at $0.0670 and the 50 EMA at $0.0793 are acting as heavy resistance that the price hasn’t challenged in months.
Now CORE’s price sits below the 0.236 level at $0.15, with no support visible on this chart.
The indicators, however, are flashing extreme readings that demand attention. The RSI has collapsed to just 9.45.
Furthermore, two consecutive bullish divergence signals fired in December and February, each preceding meaningful bounces.
The RSI is now well below both prior divergence lows, setting up a potential third, and far more powerful, signal.
Meanwhile, the Awesome Oscillator (AO) at -0.0194 continues printing red. But the bars are shrinking, hinting that bearish momentum is gradually exhausting.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
