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Liquidity Zones and Liquidity Voids: Analysing Price Dynamics

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Liquidity Zones and Liquidity Voids: Analysing Price Dynamics

Liquidity zones are areas where large buy and sell orders cluster, often acting as support or resistance. Liquidity voids (or imbalances) are fast price moves where little trading occurred, and price often returns to fill them.

Traders use liquidity zones to identify entry and exit points, while liquidity voids may help anticipate retracements and continuation moves.

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This article explains how liquidity zones and liquidity voids function in market structure and highlights their role on price charts.

Takeaways

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  • Liquidity zones = high trading activity (support/resistance)
  • Liquidity voids = low activity (fast price moves)
  • Price tends to:
    • move towards liquidity
    • return to fill voids
  • Commonly used with:
    • market structure
    • volume analysis

Liquidity Zones vs Liquidity Voids

Feature

Liquidity Zones

Liquidity Voids

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Activity

High

Low

Price behavior

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Slows / reacts

Moves fast

Role

Support/resistance

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Imbalance

Strategy

Reversals / breakouts

Mean reversion

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Liquidity zones and liquidity voids differ primarily in how order flow is distributed and how price behaves within each environment.

In liquidity zones, trading activity is elevated due to the presence of clustered orders around previous highs, lows, or consolidation ranges. This concentration of liquidity typically causes prices to slow down, rotate, or produce reactions, reinforcing their role as support and resistance areas.

In contrast, liquidity voids form during strong directional moves, leaving behind areas where little trading activity has previously occurred. As a result, when price revisits these regions, it often moves quickly due to the absence of significant opposing orders.

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Liquidity zones are generally associated with reversal or breakout strategies, where traders anticipate interaction between buyers and sellers. Liquidity voids, however, are typically approached with mean reversion expectations, as the market tends to rebalance prior inefficiencies.

Understanding Liquidity in Trading

In trading, liquidity refers to how easily an asset can be bought or sold without significantly affecting its price. High liquidity means there are enough buyers and sellers at a given price level, facilitating smoother transactions. This concept is critical because it affects how quickly and at what price a trader can enter or exit positions.

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Assets with high liquidity tend to have tighter spreads, which may reduce trading costs.

Conversely, assets with low liquidity can experience abrupt price movements due to limited order flow. Understanding liquidity may help traders make decisions.

These dynamics give rise to two important phenomena in trading: liquidity zones and voids. Liquidity zones are areas with a high concentration of trading activity, while liquidity voids represent gaps in the market where trading activity is sparse, each presenting unique conditions for trading strategies.

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What Are Liquidity Zones in Trading?

Liquidity zones (also called liquidity levels) are specific areas on a price chart where trading activity is highly concentrated. These zones indicate areas where large orders can be executed with minimal price impact.

Forex liquidity zones highlight areas where currency pairs tend to see higher activity.

These areas may be useful for identifying reversals or breakouts, providing reference points for entries and exits.

These zones often form around historical price levels where significant trading activity has occurred. They often act as magnets, attracting future price movement due to expected order flow. Liquidity levels are commonly associated with support and resistance. When price approaches these levels, traders can expect increased order flow, which may lead to clearer price reactions.

Liquidity Zones vs Order Blocks

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Feature

Liquidity Zones

Order Blocks

Definition

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Areas on a chart where a large volume of buy and sell orders cluster together.

The last bullish or bearish candle that forms before a strong move in the opposite direction.

Formation

These form gradually as price revisits a level multiple times, allowing resting orders to build up.

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Order blocks form from a single institutional candle that appears just before an impulsive price move.

Size

They tend to cover a wider price range because they reflect accumulated trading activity over time.

They are typically narrower, defined only by the high and low of one specific candle.

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Purpose

They represent areas where price is likely to react due to concentrated supply or demand pressure.

They mark specific price points where institutional traders are thought to have placed large orders.

Usage

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Traders watch for reversals, reactions, or breakouts when the price returns into these broader zones.

Traders look for prices to return to the block and show signs of trend continuation.

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How Traders Identify Liquidity Zones (With Examples)

Traders identify liquidity zones using volume, price structure, and historical levels. Liquidity zone trading depends on accurately identifying areas where trading activity is concentrated. These levels highlight regions of high volume and may act as pivot points for price action.

Volume Profile

This approach uses the volume profile to show where most trading activity has occurred.

Unlike traditional indicators that display volume over time, the volume profile shows volume at specific price levels. This may help traders identify peaks in volume, highlighting areas of significant liquidity.

To use the volume profile tool as we have in the picture above, you can head over to FXOpen’s TickTrader trading platform and search for “Volume Profile Fixed Range” under the Indicators tab.

Price Consolidation Areas

Recognising zones where the price has consolidated for a notable period is another method. These areas represent a tug-of-war between buyers and sellers, resulting in a high volume of trades. Such levels often act as magnets for future price action, making them critical for liquidity area trading.

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Previous Support and Resistance Levels

Historical support and resistance levels are invaluable for spotting zones. These are levels at which significant reversals or pauses in trend have occurred, indicating areas where large volumes of orders may accumulate. When price approaches these levels again, it often does so with increased trading activity, making them prime candidates for liquidity areas.

What Is a Liquidity Void (Imbalance)?

Liquidity voids (imbalances) are rapid price movements where little trading activity occurs between two levels. These gaps can lead to abrupt price changes and are often visible as sharp moves on a chart.

A liquidity void in forex signals an imbalance between buyers and sellers, causing prices to move quickly. This can result in sharp price movement as the market seeks a new equilibrium. These voids often occur after major news releases, during low-liquidity periods, or due to large institutional trades.

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Their impact extends beyond the initial move. They represent areas where the market has not established a consensus price, which may lead to increased volatility later. Prices often return to these areas to “fill” the imbalance and restore balance in the market.

Traders navigate the increased volatility and unpredictability associated with these gaps but can also strategise to take advantage of the potential return to equilibrium.

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How Traders Spot Liquidity Voids (Types of Liquidity Voids)

Liquidity voids can be classified based on where they appear in a trend. Liquidity voids in the forex market manifest in various forms, each with distinct characteristics and implications for traders. Understanding the different types of voids may support traders in navigating these challenging areas. Some notable types of liquidity voids are common, exhaustion, breakout, and runaway. Let’s take a look at them:

Common Liquidity Voids

Common voids appear randomly across charts without any news or event trigger, forming from natural market ebb and flow. They don’t always carry significant analytical value but are still worth monitoring for risk management purposes.

Exhaustion Liquidity Voids

Exhaustion liquidity voids appear at the end of a trend when momentum fades and price makes a final push before reversing. Traders often watch for them as potential signals of a trend reversal.

Breakout Liquidity Voids

Breakout voids form when price breaks through a key support or resistance level with enough force to leave behind an imbalance. They often signal the beginning of a new trend.

Runaway Liquidity Voids

Runaway voids occur within an existing trend and signal its continuation. Price moves sharply in the trend’s direction, bypassing levels where liquidity would normally sit, which may support trend strength confirmation.

How Traders Use Liquidity Zones and Voids

Liquidity zones and voids form the basis of several common trading approaches. Here’s how traders typically work with them.

Step 1: Identify a Liquidity Zone

Traders start by locating areas where price has repeatedly reacted, such as support and resistance levels or high-volume nodes on a volume profile. These clusters of resting orders act as magnets for price.

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Step 2: Wait for a Price Reaction

Rather than acting immediately, traders watch how price behaves when it reaches the zone. Does it stall? Reverse? Push straight through? The reaction tells the story.

Step 3: Look for Confirmation

A reaction alone isn’t enough. Traders look for confirmation through candlestick patterns (like pin bars or engulfing candles) or a shift in market structure, such as a break of a recent swing high or low.

Step 4: Target Nearby Liquidity or a Void

Once confirmed, traders typically set targets at the next liquidity zone or unfilled void. Voids act as areas price is likely to move toward, since they represent unfinished business on the chart.

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In this example, price moves into a liquidity zone, leaving a void behind it. Buyers attempt to push higher but fail, printing a long upper wick and signalling weakening momentum. Price then breaks below the established low and drops to fill the liquidity void left on the way up. A trader could have opened a sell position after the price broke below the low, set a stop-loss level above the nearest swing high, and closed the trade once the liquidity void was filled.

Limitations of Liquidity Zones and Voids

Understanding liquidity zones and voids provides traders with valuable insights into market dynamics, yet relying solely on these concepts comes with limitations. Here are some specific challenges to consider:

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  • Market Volatility: Market volatility can disrupt liquidity patterns, making historical levels less reliable.
  • Influence of External Events: External events such as economic announcements can override expected behaviour.
  • Timeframe Sensitivity: The relevance of zones and voids varies across timeframes, which may affect analysis.
  • False Signals: These patterns can also produce false signals, leading to premature decisions.

The Bottom Line

Liquidity zones and voids may help explain how price moves within the forex market. They highlight areas of trading activity and imbalance, offering insight into potential price behaviour.

However, traders use them alongside other tools due to their limitations.

For traders seeking to apply these insights, opening an FXOpen account could provide a practical platform to explore and leverage the dynamics of liquidity in their trading across hundreds of tradable assets.

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FAQs

What Are Liquidity Zones?

Liquidity zones are areas on a chart where buy and sell orders are concentrated, often acting as support or resistance. Traders monitor these levels to identify potential entry and exit points.

How Are Liquidity Zones Identified in Trading?

Liquidity zones are identified using tools such as volume profile, price consolidation, and historical support and resistance. These methods highlight areas where trading activity is concentrated.

How May Liquidity Zones Be Traded?

Liquidity zones are commonly used to identify potential entry and exit points. Traders monitor price reactions at these levels and may combine them with other tools to refine trading decisions.

What Are Liquidity Voids?

Liquidity voids are areas where price moves quickly due to low trading activity, creating an imbalance. Price often returns to these areas to “fill” the gap and restore market balance.

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This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

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Gold Price Analysis: Time’s Up for Metals?

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Gold price staged a recovery on Wednesday, climbing 1.6% to settle at $4,550 even as geopolitical narratives shifted the analysis rapidly.

Gold price staged a defiant recovery on Wednesday, climbing 1.6% to settle at $4,550 even as geopolitical narratives shifted the analysis rapidly. The rebound was fueled by declining oil prices and reports of a potential Washington-brokered proposal to end the conflict in the Middle East.

While President Trump suggested negotiations with Tehran are active, Iranian officials have issued a stern denial, creating a volatile backdrop for safe-haven assets.

Spot markets reacted swiftly. Gold futures delivery surged over 3%, last seen at $4,545.50 per ounce. However, the broader trend remains concerning for bulls. Since March 4, the metal has suffered a 10% drop, significantly underperforming digital assets like Bitcoin, which has retraced only 4.5% in the same period. This divergence suggests that while headlines move prices momentarily, the underlying capital rotation favors digital scarcity.

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Gold Price Analysis: Can XAU Sustain Gains Above $4,550?

Tether Gold (XAUT), the crypto-native proxy for the metal, mirrors the spot recovery, trading at $4,553. This bounce, while welcome, does not erase the technical damage inflicted earlier in the month. The asset is currently trading in a noise vacuum, lacking the clearly defined support levels visible in the crypto market.

Analysts are watching the correlation between gold’s recovery and the digital asset market’s resilience. Bitcoin currently holds a critical floor above $70,000, with resistance stacking up near $74,500. If the safe-haven narrative flips decisively back to digital assets, driven by the “remarkable relative strength” noted by institutional researchers, gold’s current rally could prove to be a localized bull trap.

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Gold price staged a recovery on Wednesday, climbing 1.6% to settle at $4,550 even as geopolitical narratives shifted the analysis rapidly.
XAUT USDT, TradingView

Recent data indicate a similar volatility pattern in silver markets, suggesting this is a sector-wide liquidity test rather than a gold-specific breakout. Unless gold can reclaim the structural highs lost in early March, the path of least resistance remains sideways to down.

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LiquidChain Targets Cross-Chain Upside as Commodities Stall

Gold’s volatility, driven by contradictory war reports rather than fundamental demand, has pushed growth-focused traders toward high-beta infrastructure protocols. Metals may preserve wealth (sometimes), but they rarely multiply it overnight. As the macro landscape remains murky, smart money is rotating into Layer 3 solutions that solve liquidity fragmentation.

Enter LiquidChain ($LIQUID). This emerging Layer 3 protocol is building a unified execution environment that fuses Bitcoin, Ethereum, and Solana ecosystems into a single liquidity layer. The project has demonstrated significant early traction, raising $600K right now, from early backers.

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The token is currently priced at $0.0143, with more than 1700% APY in staking rewards.

While early-stage tokens carry valid vesting risks, the LiquidChain presale presents a rare opportunity to enter a critical infrastructure play before mainnet valuation.

Disclaimer: This is not financial advice. Crypto assets are highly volatile. Do your own research.

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Bitcoin Price Prediction: BTC A Safe Haven Assets Bloomberg Analyst Says

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While gold spot ETFs bled, Bitcoin price has demonstrated resilience, holding the $70,000 level amid prediction of market whipsaws.

Investors fled major gold funds as geopolitical tensions escalated, marking a distinct shift in capital allocation strategies. While gold spot ETFs bled, Bitcoin price has demonstrated resilience, holding the $70,000 level amid prediction of market whipsaws. This divergence suggests a potential changing of the guard, according to Bloomberg analyst.

The latest data paints a stark picture of this rotation. In the last week alone, top gold ETFs like GLD and IAU saw approximately $3.8 billion in exits. Conversely, Bitcoin investment products absorbed roughly $2 billion over the past few weeks, signaling that institutional appetite is shifting toward digital scarcity.

“Since the Iran strike, Bitcoin, surprisingly, has looked like a good safe haven and gold hasn’t,” noted Eric Balchunas, senior ETF analyst at Bloomberg Intelligence.

While gold spot ETFs bled, Bitcoin price has demonstrated resilience, holding the $70,000 level amid prediction of market whipsaws.
BTC XAUT, TradingView

Currently, Bitcoin trades above $71,000, noting a fractional bounce by 0.3% in the last 24 hours.

This decoupling challenges the traditional narrative that crypto assets are purely risk-on vehicles. With Bitcoin behaving as a store of value while gold falters, we are closely watching the $70,000 support zone for the next directional cue.

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Bitcoin Price Prediction: Can BTC Hold $70,500 Support Amid Volatility?

Bitcoin’s price action over the last 48 hours has been defined by tight consolidation, oscillating between a high of $72,000 and a low of $69,000. While the asset remains down 18% year-to-date, the immediate short-term structure shows buyers stepping in aggressively near the $68,000 mark.

Volume data indicates a standoff and cautious optimism. However, overhead resistance at $71,800 remains a formidable barrier. If bulls fail to reclaim this level, a retest of the monthly low at $65,000 becomes a viable bearish scenario. Conversely, a breakout above $72,500 could open the path toward this year’s high.

While gold spot ETFs bled, Bitcoin price has demonstrated resilience, holding the $70,000 level amid prediction of market whipsaws.
BTC USD, TradingView

The technical setup suggests a market in waiting. Geopolitical catalysts are currently priced in, but the lack of a clear breakout keeps margin traders largely sidelined. For those seeking aggressive multiples, Bitcoin’s maturity into a “safe haven” may limit short-term explosive upside compared to emerging ecosystem plays.

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Bitcoin Hyper Targets Early Mover Upside as L2 Narrative Heats Up

While Bitcoin stabilizes as a macro asset, the race to scale its network is accelerating. Capital is rotating into infrastructure layer-2 solutions that promise to unlock programmability for the world’s largest digital asset. Leading this charge is Bitcoin Hyper ($HYPER), the first-ever Bitcoin Layer 2 to integrate the Solana Virtual Machine (SVM).

The project is capitalizing on the demand for high-speed, low-cost execution on Bitcoin. By utilizing the SVM, Bitcoin Hyper delivers transaction finality faster than Solana itself, addressing Bitcoin’s core limitations—slow transactions and high fees—while maintaining a decentralized canonical bridge to the main chain. The market response has been quantifiable: the presale has already raised more than $32 Million.

Early participants can enter at a price of $0.0136 per token with 36% APY on staking rewards. Beyond the technology, the protocol offers high APY staking incentives to secure the network early. As Bitcoin continues to trade sideways in the $70k range, the risk-reward ratio for pre-market infrastructure plays like $HYPER is drawing attention from traders looking to front-run the L2 ecosystem boom.

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Investors can research the Bitcoin Hyper presale here.

Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice.

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Ethereum Price Prediction: ETH Scaling Security and AI Crossroads

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Ethereum price entered a pivotal stretch this week as the network confronts deep existential questions regarding its roadmap prediction.

Ethereum price entered a pivotal stretch this week, trading at $2,170, a subtle +0.73% in the last 24 hours, as the network confronts deep existential questions regarding its roadmap prediction.

Following critical remarks from co-founder Vitalik Buterin regarding the ecosystem’s fragmented scaling approach, markets are reacting with caution. Data from prediction markets currently imply downside risks.

The technical landscape has shifted violently in early 2026. While developers previously assumed applications would absorb complexity, Buterin argues that current Layer-2 (L2) proliferation may not fully deliver on Ethereum’s original design goals. This introspection arrives as the network attempts to secure itself against quantum threats and integrate AI capabilities.

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This uncertainty regarding scaling architecture often leads capital to rotate. As established networks grapple with legacy cohesion, the market is pricing in the next generation of infrastructure plays.

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Ethereum Price Prediction: Can ETH Hold Support This Week?

Ethereum’s price action suggests a battle for directional control. Currently changing hands at $2,170, ETH remains pinned between a critical support floor at $2,100 and overhead resistance at $2,350. Recent data reveals seller-skewed order books (47/43), indicating that bears are attempting to force a retest of the psychological $2,050 zone.

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Technical indicators flash warning signs. While the MACD remains positive at 6, the histogram has turned red (-1.93), signaling that the bullish momentum seen during recent L2 testnet expansions is fading. A break below the 9-day DEMA at $2,300 has already occurred, forcing bulls to defend the lower range.

Ethereum price entered a pivotal stretch this week as the network confronts deep existential questions regarding its roadmap prediction.
ETH USD, TradingView

The 24-hour trading range ($2,150-$2,180) reflects tight consolidation. If ETH can reclaim $2,300 and close above $2,400, analyst targets suggest a breakout toward the 200-EMA at $3,260 is possible.

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LiquidChain Targets Unified Liquidity as Ethereum Segments

While Ethereum struggles with the fragmentation caused by disconnected Layer-2s—a concern highlighted explicitly by Buterin—investors are looking toward protocols that solve the liquidity fracture. This narrative shift has directed significant volume toward LiquidChain ($LIQUID), a Layer-3 infrastructure project designed to unify execution across chains.

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Unlike current scaling solutions that isolate liquidity, LiquidChain fuses Bitcoin, Ethereum, and Solana into a single execution environment. The project’s presale has already raised more than $600K, with more than 1700% APY rewards.

Priced at $0.0143 during the current tranche, the project offers a verifiable settlement layer that appeals to traders fatigued by bridging risks. While high-cap assets like ETH face resistance in established price channels, early-stage infrastructure plays like LiquidChain are capturing the “solution utility” premium.

Research the LiquidChain Presale

Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice.

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Silver Price Analysis: Almost 50% Drop From The Top

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📉

Investors holding silver positions opened in early this year are staring at significant unrealized losses today. Silver price finished yesterday’s session down to $68 per ounce, a sharp retraction from the $120 highs seen in late January following a turbulent market analysis.

Following a volatile trading window where prices collapsed as low as $61 during the Asian session, market participants are scrambling to reassess the geopolitical premiums previously baked into the commodity. This 40% drawback highlights the dangers of chasing assets that climb “like fireworks.”

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Silver Price Analysis: Can The Metal Stabilize After Double-Digit Drop?

$69 is the number currently defining traders’ screens. The session low of $61, printed at 3 a.m. ET, now serves as the critical support floor. The volatility stems directly from macro-geopolitical developments involving the United States and Iran, specifically regarding the Strait of Hormuz. While the threat of immediate escalation has been postponed by five days to allow for talks, the market reaction suggests the risk premium is eroding faster than bulls anticipated.

Technical indicators scream caution. The swift drop from $120 suggests the parabolic phase has fractured. Volume on the downdraft was significant, indicating institutional liquidation rather than mere retail panic.

Silver price finished yesterday's session down to $68 per ounce, from highs seen in late January following a turbulent market analysis.
XAG USD, TradingView

If the $61 level fails to hold during the next testing of liquidity, analysts suggest further downside is probable. Conversely, a stabilization here requires a distinct shift in sentiment, perhaps fueled by safe-haven narratives reversing back to precious metals. Capital seems to be rotating, and fast.

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Bitcoin Hyper Targets Early Mover Upside as Commodities Stumble

While silver investors lick their wounds from an 18.5% correction, smart capital is actively hunting for infrastructure plays that offer yield rather than just a volatile store of value. The heavy volatility in traditional commodities is driving a rotation into programmable assets—specifically Bitcoin Layer 2s.

Enter Bitcoin Hyper ($HYPER), the first-ever Bitcoin Layer 2 solution integrating the Solana Virtual Machine (SVM).

This project is not relying on geopolitical fear; it is building structural utility. Bitcoin Hyper has already raised an exact $32 million in its presale, signaling massive demand for high-speed Bitcoin infrastructure.

By bridging Bitcoin’s trust with Solana’s speed, $HYPER offers low-latency transaction execution and high APY staking with 36% rewards. The token is currently priced at $0.0136.

Investors tired of commodity whiplash are increasingly looking to research Bitcoin Hyper as the next growth frontier.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency and commodity investments are highly volatile. Please do your own research.

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Indian Court Says ‘No Case’ Against CoinDCX Founders

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Phishing, India, Cryptocurrency Exchange, Scams, Social Engineering

A magistrate court in Thane, India, has granted bail to CoinDCX co-founders Sumit Surendra Gupta and Niraj Ashok Khandelwal, ruling that no prima facie case was made out against them in a 71 lakh Indian rupees ($75,000) cheating complaint linked to a fake trading platform posing as the Indian crypto exchange. 

The court’s common order on March 23 on their bail applications concluded that they were entitled to bail because no case was made out against them, even on an initial look at the available evidence. The founders were taken in for questioning on Saturday and remanded over the weekend after a complaint alleged they had duped an investor.

In the order, the magistrate recorded that the investigation officer had “no objection” to their release and that the applicants were not present in Mumbra when the alleged offence took place, adding that “some other person by representing as accused cheated the informant,” a fact the informant has admitted in court. 

CoinDCX says bail order backs “third‑party impersonation”

In a March 24 statement on X, CoinDCX said the court proceedings supported a “third-party impersonation” scenario and that the fraud occurred on a lookalike site, coindcx.pro, which it said had no connection to the company. 

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Phishing, India, Cryptocurrency Exchange, Scams, Social Engineering
CoinDCX court common order. Source: CoinDCX

The judge noted that the informant filed an affidavit stating that another accused, Rana, had repaid him the cheated amount and that the applicants are not the persons he met at a café in Kausa Mumbra where the fraudulent deal was struck. 

With the matter “amicably settled” between the informant and the main accused, the court said there was no question of the founders tampering with evidence or witnesses.

Each was ordered released on bail upon executing a 50,000 Indian rupee bond (roughly $530) on condition that they cooperate with the investigation and trial.

Related: Hong Kong retiree loses $840K in triple ‘crypto expert’ scam

CoinDCX framed the episode as part of a broader rise in impersonation and phishing scams targeting well-known brands in India’s financial and crypto sectors, urging users to verify domains and only interact with the exchange’s official platform and social media profiles.

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Prior scrutiny surrounding CoinDCX

Established in 2018 and headquartered in Mumbai, CoinDCX ranks among India’s most prominent cryptocurrency exchanges. The company reached an estimated valuation of around $2.45 billion following a funding round led by Coinbase Ventures in October 2025.

The platform has previously come under scrutiny for security concerns after a July 2025 incident in which hackers drained approximately $44 million from one of its internal operational accounts, although CoinDCX emphasized that no customer funds were compromised.

Magazine: Bitcoin may take 7 years to upgrade to post-quantum — BIP-360 co-author