Lock-up periods limit liquidity, affecting token value. Shorter lock-ups and gradual releases generally support healthier post-airdrop price stability.
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A governance token is a type of cryptocurrency that gives holders voting power over decisions in a decentralized protocol or platform. These tokens are commonly used in DeFi projects to allow community members to propose and vote on changes, such as protocol upgrades, fee structures, or governance rules. The idea is to decentralize control and ensure the platform evolves based on collective decisions rather than centralized entities. Holding governance tokens gives users a stake in the project’s direction, but it also comes with responsibility, as decisions can significantly impact the project's future and token value
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Large buy or sell orders create significant levels of support and resistance in the order book. A large buy order near a certain price level can act as support, suggesting that the price may not drop further due to strong demand at that level. Similarly, a large sell order at a higher price acts as resistance, making it more difficult for the price to rise. If these large orders are absorbed by market activity, it may indicate that the price will break through the support or resistance level, triggering a breakout or breakdown. Traders use this data to anticipate price movements and adjust their strategies.
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