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The Libra price has slumped 71% in the last 24 hours to trade at $0.4461 as of 9 p.m. EST on an 87% plunge in trading volume to 191 million.
The launch of Libra (LIBRA), a cryptocurrency that was initially backed by Argentine President Javier Milei, quickly became a financial disaster after insiders allegedly cashed out $107 million, causing a 94% price crash within hours. Milei withdrew his support amid allegations on social media platforms of a rug pull.
Onchain analytics firm Lookonchain reported that eight wallets tied to the Libra team withdrew 57.6 million USDC and 249,671 SOL ($49.7 million) through liquidity manipulation. The token briefly soared to a $4.56 billion market cap before plummeting to $257 million in just 11 hours.
The $LIBRA team has cashed out $107M!😱
8 wallets related to the $LIBRA team have obtained 57.6M $USDC and 249,671 $SOL($49.7M) by adding liquidity, removing liquidity and claiming fees.
Wallets:
DefcyKc4yAjRsCLZjdxWuSUzVohXtLna9g22y3pBCm2z… pic.twitter.com/vpd7nGyMHQ— Lookonchain (@lookonchain) February 15, 2025
Commenting on the situation, Binance Co-Founder Changpeng Zhao, known by his nickname CZ, shared his thoughts on the controversy, stating that while he couldn’t verify all the details, the case highlights crucial lessons.
He emphasized the importance of thorough research before endorsing a token, noting that token economics and unlocking schedules play a vital role in a project’s sustainability.
Interesting thread. I'm not sure of its accuracy, but there are lots of details. It shows:
1. You should be very careful before endorsing a token.
2. Token economics matter. Unlocking schedules matter. A lot of research has to be done beforehand.
3. Buying new tokens is… https://t.co/iYIyrIrN3h
— CZ 🔶 BNB (@cz_binance) February 15, 2025
He also pointed out that investing in new tokens carries significant risks but acknowledged that the incident demonstrates a strong appetite for investment capital. CZ concluded that, if handled properly, Libra could have been a major economic opportunity for Argentina instead of a fiasco.
Libra Price Eyes Recovery After Intense Sell-Off
The LIBRA/USD pair has witnessed extreme volatility in recent trading sessions, experiencing a sharp breakout above $1.20 before a rapid liquidation event sent prices crashing down to the $0.28 – $0.30 range. The intense sell-off triggered widespread liquidations, forcing traders out of positions and leading to a period of market consolidation. However, this zone has now emerged as a key support level, where buyers have started to re-enter the market.
Over the past few sessions, the price has formed an ascending channel, indicating a potential reversal as bullish sentiment gradually returns. If this momentum continues, analysts believe the cryptocurrency could recover toward the $0.50 – $0.60 range in the near term.
LIBRA/USD Analysis Source: Dextools.io
Market indicators are showing signs of strength. The 50-period moving average (SMA) is currently around $0.2974, indicating the price stabilizes. Meanwhile, the MACD indicator has formed a bullish crossover, with the MACD line (0.0060) rising above the signal line (0.0398), a classic signal of growing buying interest.
Additionally, the Relative Strength Index (RSI) is at 56.65, indicating neutral momentum but with room for further upside if it pushes past the 60-65 level. A move above this range could confirm stronger bullish sentiment and attract additional buyers.
Libra Price Faces Pivotal Moment As Traders Watch Key Levels
The market is still at a crucial inflection point. If LIBRA/USD breaks above the upper resistance of the ascending channel, it could trigger a stronger rally toward the $0.50 – $0.60 resistance zone, potentially setting the stage for further gains.
However, if buying pressure weakens and the price falls below $0.30, it may re-test support around $0.28 – $0.25, risking a deeper correction. With liquidity returning and technical indicators signaling a potential upside, LIBRA/USD traders remain cautiously optimistic. A breakout above the current structure could validate a bullish reversal, while failure to hold key support could reignite selling pressure.
Solaxy Presale Races Toward $22 Million – Next Crypto To Explode?
Even as the Libra price heads for a possible reversal, a new Solana layer 2 meme coin called Solaxy (SOLX) has raised more than $21.3 million in its presale.
Over time, the Solana network has been facing increasing congestion due to rising demand caused by meme coins launched on its Pump.fun platform, causing heavy strain on the mainnet and putting layer 1 at risk of delays and potential outages.
Solaxy arrives to help reduce this congestion and make it easier for the Solana network to make fast transactions effectively.
The benefits of Solaxy can really bring a tear to your eye…$SOLX hits hard! 🛸🪐 pic.twitter.com/yqIjimnys9
— SOLAXY Help Team 𝕏 (@SOLAXYTOKEN_HT) February 7, 2025
To ease this burden, Solaxy brings with it a layer 2 sidechain that will process transactions off-chain, bundle them, and then submit them to Solana’s layer 1 for validation. Using this approach, Solaxy will boost network efficiency, reduce transaction fees, and increase throughput, positioning Solaxy as a promising scaling solution for Solana.
The surge in momentum for SOLX has 99Bitcoins, a popular crypto YouTube channel with over 724K subscribers, predicting that the SOLX token could potentially surge 100x when it launches.
Investors seeking passive crypto rewards can also stake SOLX tokens for a huge 192% annual return.
Investors still have a small window to buy SOLX tokens at $0.001636 with crypto or a bank card. But its price is set to increase in less than 13 hours.
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