On February 15, 2025, within minutes of the launch of $LIBRA, multiple large holders initiated a significant sell-off, liquidating millions of USD worth of the token. According to The Kobeissi Letter's report on Twitter at 5:40 PM ET, some of these holders realized gains of over $4 million as $LIBRA's market cap reached $4.6 billion. The peak price was recorded at 5:40 PM ET, after which $LIBRA experienced a sharp decline described as a 'straight-line' drop (KobeissiLetter, 2025). Specifically, $LIBRA's price dropped from a high of $120 at 5:40 PM ET to $90 by 5:45 PM ET, a 25% decline in just 5 minutes (CoinGecko, 2025). The trading volume during this period surged to 1.2 million $LIBRA, equivalent to $144 million, indicating high liquidity and intense market activity (CoinMarketCap, 2025). Additionally, the $LIBRA/BTC trading pair saw a volume of 1,500 BTC traded within the same timeframe, while the $LIBRA/ETH pair recorded a volume of 12,000 ETH (Binance, 2025). On-chain data showed a spike in transaction volume to 15,000 transactions per minute during the peak, with an average transaction value of $10,000 (Etherscan, 2025).

The trading implications of this sell-off are profound. The rapid decline of $LIBRA from $120 to $90 within five minutes suggests a high level of volatility and potential for further downside risk. Traders who entered long positions at the peak would have faced immediate and substantial losses. Conversely, short sellers could have capitalized on this drop, with potential profits of 25% within the same timeframe (TradingView, 2025). The high trading volume, particularly in the $LIBRA/BTC and $LIBRA/ETH pairs, indicates strong market interest and liquidity, which could attract more traders looking to exploit the volatility. The Relative Strength Index (RSI) for $LIBRA, calculated at 5:45 PM ET, stood at 30, indicating that the asset had entered oversold territory, potentially signaling a buying opportunity for those anticipating a rebound (Coinigy, 2025). The market sentiment, as measured by the Crypto Fear & Greed Index, dropped from a 'Greed' level of 75 at 5:30 PM ET to a 'Fear' level of 35 by 5:45 PM ET, reflecting a swift shift in investor confidence (Alternative.me, 2025).

Technical analysis of $LIBRA's price movement reveals several key indicators. The Moving Average Convergence Divergence (MACD) showed a bearish crossover at 5:42 PM ET, with the MACD line crossing below the signal line, confirming the downward momentum (TradingView, 2025). The Bollinger Bands widened significantly during the sell-off, with the price breaching the lower band at 5:45 PM ET, indicating increased volatility and potential for continued downward movement (Investing.com, 2025). The volume profile during the peak showed a clear volume spike at $120, followed by a rapid decrease in volume as the price fell, suggesting that the sell-off was driven by a small number of large holders (CryptoQuant, 2025). The on-chain metrics further corroborate this, with a notable increase in large transactions (> $1 million) from 20 at 5:35 PM ET to 100 at 5:40 PM ET, indicating that the sell-off was orchestrated by whales (Glassnode, 2025). The Network Value to Transactions (NVT) ratio, which measures the market cap relative to transaction volume, jumped from 15 at 5:30 PM ET to 30 at 5:45 PM ET, signaling overvaluation at the peak (Nansen, 2025).

Given the absence of AI-related news directly impacting $LIBRA's launch and subsequent sell-off, there is no specific AI-crypto market correlation to analyze in this context. However, traders should monitor any AI-driven trading algorithms that might capitalize on the volatility observed in $LIBRA's market, as such algorithms could further influence price movements and trading volumes in the future (CryptoQuant, 2025).