What Triggered the Selloff in KAITO and COOKIE Tokens

Recent market action has seen both KAITO and COOKIE tokens experience significant downward pressure. Understanding the mechanics behind these moves requires looking at several converging factors.

Market conditions have shifted sharply. When liquidity dries up or sentiment turns, smaller-cap tokens often face disproportionate selling pressure. Large holders dumping positions can cascade into cascading liquidations, especially if these tokens were used as collateral on lending platforms.

On-chain data tells part of the story. Whale wallets moving sizeable amounts from accumulation addresses to exchanges typically signals distribution phases. Meanwhile, derivative funding rates and open interest changes can reveal whether margin traders were caught off-guard.

Project-specific catalysts matter too. Any governance updates, tokenomics adjustments, or partnership changes usually get priced in fast. Sometimes it's as simple as profit-taking after a rally, or rotation into other opportunities.

The broader crypto market environment plays a role as well. When Bitcoin or Ethereum weaken, altcoins tend to follow suit even harder. Risk-off sentiment from traditional markets can spill over into digital assets.

For traders watching these tokens, it's worth monitoring both the technical breakdown levels and the volume profile. Capitulation usually shows distinctive patterns before bottoms form.