1. Fundamental Analysis

1.1 Introduce

Liquidium is the leading non-custodial lending protocol on Bitcoin where users can borrow and lend BTC against their Bitcoin assets like Ordinals and Runes.

1.2 Basic Info

NameValueNameValue
SymbolLIQUIDIUMMarket Cap2246055.6371
NameLiquidium(LIQUIDIUM•TOKEN)White Paper--
Web Sitehttps://liquidium.fiIs ICONone
Wallet--Raised Funds-
Source--Distribution-
Explorerhttps://unisat.io/runes/Algorithm--
Forum--Proof--
Mining Total100000000
Supply100000000Release Date2024-07-22
Available Supply11777953

2. Technical Analysis

2.1 Kline Chart

2.2 Analysis

The recent K-line data reveals a shift from high volatility and price swings toward a consolidation phase, specifically observed in the latter half of December. Initially, the period between December 3rd and December 11th is characterized by a significant upward momentum, punctuated by substantial trading volumes. This vigorous activity culminated in a peak around December 11th. This peak was immediately followed by a downtrend lasting until the 20th December, where the price began to stabilize, though retaining a downward bias. Following this, a period of relative stability commenced around December 21st onward, indicated by a reduction in both price volatility and trading volume. This contraction phase, evident from late December leading into the early days of January 2025 suggests a market pause, likely reflecting investor uncertainty. The reduced price ranges are indicative of diminishing buying and selling pressure.

The analysis period can be broken down, from start to finish, into multiple timeframes, as it relates to the price action. First, a rapid increase in price and volume from December 3rd leading up to the 11th, followed by a rapid decrease in price and volume. The last two weeks of December have a slow decrease in price action, leading to the price action of the first day of January, 2025, which has low volume relative to other days and a low trading range. The price action from the 20th of December onward indicates a market indecision, where neither the bulls nor bears have the dominant position. The overall volatility of the analyzed period is moderate, with an apparent peak of volatility occurring from around December 8th until the large price drop around December 20th. This high volatility is indicated by large price movements and high volume.

Towards the end of December, in particular, the trading volume decreased significantly, reaching considerably smaller volume by the 31st December and the 1st January 2025, indicating a weakening conviction, likely a loss of interest in the current price level, suggesting a future price break from this current consolidation phase. Looking at trends, there was an initial dramatic surge followed by a correction and a protracted period of minor decline with consolidation, which can also be looked at as bearish consolidation.

The pattern indicates a phase of market indecision where the price is neither sharply up nor down. This phase is sometimes considered a period where the market is testing support or resistance to establish a baseline and new price trend. Given the lack of clear directional movement and the low relative volumes at the very end of December and the start of 2025, the market is in a transitional stage, where a breakout is possible once a key support or resistance level is breached. The current pattern suggests that the market might be waiting for a catalyst before establishing a new direction and it is unclear when or what the catalyst might be.