Deep Dive
1. Broad Market Downturn (Bearish Impact)
Overview: The entire crypto market sold off sharply on January 31, 2026, with the total market cap dropping 7.7% to $2.63 trillion. The CMC Fear & Greed Index sits at 26 ("Fear"), reflecting widespread risk aversion among traders.
What this means: In such environments, capital typically flees higher-risk, lower-liquidity assets like gaming altcoins first. POWER, with a relatively modest $37.9M market cap, is highly susceptible to this sector-wide deleveraging. Its 24h decline of 9.82% outpaced the market's 7.7% drop, confirming its higher beta and vulnerability during downturns.
What to look out for: A stabilization or reversal in Bitcoin's price, which often dictates overall market direction.
2. Technical Selling Pressure (Bearish Impact)
Overview: POWER's price of $0.181 is below its 7-day Simple Moving Average ($0.2038) and 30-day SMA ($0.2064), indicating a bearish near-term trend. It is now testing the 78.6% Fibonacci retracement level at $0.179, a critical support zone drawn from its recent swing high and low.
What this means: Breaking below key moving averages often triggers automated sell orders and prompts momentum traders to exit positions. The high 24h trading volume of $6.01M (up 70%) confirms active selling. If the $0.179 Fibonacci support fails, the next major support could be the recent swing low near $0.128.
Conclusion
POWER's sharp decline is a combination of a hostile macro environment for crypto and its own weak technical posture, which together have amplified selling. For holders, this underscores the token's high volatility and sensitivity to broader market flows.
Key watch: Can POWER hold the $0.179 Fibonacci support, and will any positive ecosystem developments emerge to counter the prevailing negative sentiment?