Akash Network crashes 12% – Can AKT bulls defend the $0.595 support?

Akash Network [AKT] fell over 12% in 24 hours as trading volume collapsed 32%, extending heavy selling pressure across markets during Friday trading.

Market capitalization also declined 13.11% to nearly $204.34 million, reflecting weakening investor confidence during the sharp retracement. Trading activity weakened further as daily volume fell 32.82% to around $9.93 million. 

The decline showed that speculative participation had already cooled after AKT’s explosive rally toward the $0.90 region. 

Earlier buying pressure pushed the token into a steep breakout phase. However, sellers quickly regained control after the rally overheated. 

Exchange outflows deepened during the decline

Spot flow data showed growing exchange outflows throughout AKT’s latest pullback. Netflows recently dropped to nearly -$293.64K, signaling that traders continued withdrawing liquidity from exchanges during the correction. 

Several previous sessions also showed persistent negative netflows across the broader trend. 

The structure suggested investors increasingly moved tokens away from immediate sell-side activity. 

However, the market still failed to stabilize despite the continuous outflow pressure. Price weakness remained dominant as broader sentiment deteriorated across the sector. 

Earlier inflow spikes briefly supported AKT’s rally phase during January and March.  

Can AKT defend key support levels?

AKT lost strength after rejecting sharply below the major $0.906 resistance zone. The daily chart showed sellers aggressively defending that level after the recent vertical rally. 

Price then retraced toward the critical $0.595 support region, which previously acted as a breakout level during early May. Buyers still attempted to defend that structure despite growing downside pressure. 

However, AKT continued printing strong bearish candles after the rejection near local highs. The correction also erased a large portion of the breakout structure within only several trading sessions. 

Earlier bullish expansion pushed the token from nearly $0.40 toward $0.90 in a rapid move. If sellers maintained control, AKT could revisit the $0.595 support again before any meaningful recovery attempt emerged.

RSI conditions weakened sharply after the indicator previously entered overheated territory above 74. The daily RSI later dropped near 52, reflecting fading bullish strength after the aggressive rally phase. 

The decline suggested buying activity had already slowed considerably during the retracement.

Long liquidations absorbed heavy selling pressure

Liquidation data showed bullish traders absorbed most of the recent downside volatility. 

Total long liquidations recently climbed above $56K, while short liquidations remained near only $1.85K. Binance alone accounted for over $37K in long liquidations during the latest flush. 

Gate also recorded more than $13K in liquidated long positions across the decline. That imbalance reflected aggressive bullish exposure before the correction accelerated. 

Earlier rally conditions likely encouraged traders to overleverage long positions near local highs. 

However, the sudden reversal triggered rapid liquidation cascades as prices weakened sharply. Short liquidations stayed relatively low throughout the decline, showing bearish traders largely avoided major pressure during recent sessions. 

The structure continued favoring sellers across the broader market environment.

AKT’s recent decline reflected weakening speculative demand after the rally overheated near $0.90. Persistent outflows still suggested investors avoided panic selling despite the correction. 

However, sellers maintained strong control below resistance. If AKT failed to defend the $0.595 support region, the broader structure could weaken further before buyers regained confidence.

Final Summary

• AKT’s rally weakened rapidly after rejection below the critical $0.906 resistance zone.
• Long liquidations increased sharply as traders reduced bullish exposure during the correction phase.