Saros Token experiences a dramatic price crash followed by a rebound, sparking community discussion and raising concerns about altcoin volatility.
Saros Token's Wild Ride: Price Crash and the Sharp Rebound
Saros token (SAROS) holders experienced whiplash on August 24, 2025, with a near 70% price crash followed by a partial recovery. This blog post dives into what happened, why it happened, and what it means for the future of this Solana-based DeFi token.
The Plunge: A Flash Crash for Saros
On August 24, 2025, the price of SAROS plummeted, hitting a low of $0.109. This dramatic fall wiped out months of steady gains, as SAROS had been on an upward trend throughout July and early August, even reaching an all-time high (ATH) of over $0.40 on August 4, 2025. The crash sent the price tumbling below the 50-period EMA, a key level it had maintained for weeks. Trading volume spiked to 3.07 million SAROS during the event, highlighting the intensity of the sell-off.
Why the Crash? Leveraged Trading Blamed
Thanh Le, the founder of Saros, attributed the crash to leveraged trading. He explained that large positions on centralized exchanges (CEX) were reduced, leading to a sharp drop in open interest. According to Le, open interest decreased from approximately 90 million SAROS to around 20 million SAROS. He clarified that the Saros team and long-term holders did not sell their tokens, emphasizing that the crash was driven by market dynamics, not internal actions.
Community Reaction: Bearish Sentiment Lingers
The Saros price crash triggered liquidations and losses for many traders. Data from CoinGecko indicates that over 50% of the community remains bearish on the token. The event also drew comparisons to the MANTRA (OM) crash in April 2025, where the token's value dropped by 90%. Some analysts warned of similar risks in the altcoin market, where leveraged trading can amplify volatility.
RSI and MACD: Bearish Signals
Technical indicators paint a cautious picture. The Relative Strength Index (RSI) on the 4-hour chart shows weakening momentum, currently standing at 39.05, below the neutral 50 level. Before the crash, the RSI had been in overbought territory, but the rapid decline pushed it into oversold territory. The MACD indicator confirms strong bearish momentum, with the MACD line well below the signal line.
The Rebound: A Sign of Hope?
Despite the crash, Saros showed signs of recovery, bouncing back to around $0.35. This suggests that buyers stepped in to capitalize on the lower prices. However, the overall trend reflects heightened volatility, and the market remains cautious. Whether Saros can sustain this recovery remains to be seen.
Altcoin Rollercoaster: A Word of Caution
The Saros price crash serves as a reminder of the risks associated with altcoins, especially those heavily reliant on leveraged trading. Sudden market moves can erase gains in a matter of hours, leaving traders with significant losses. While the Saros team is focused on building the platform and the community is closely monitoring the situation, it's crucial to approach altcoins with caution and manage risk effectively.
Looking Ahead: Will Saros Stabilize?
The community is closely watching to see if the Saros price can stabilize. The initial recovery is encouraging, but the market remains wary. For now, keep your seatbelts fastened, folks! The altcoin market is never short of surprises.
