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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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United Parcel Service (UPS) Stock: $100M Taiwan Facility Targets Semiconductor Logistics

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UPS Stock Card

Key Highlights

  • United Parcel Service inaugurated a $100 million distribution facility in Taoyuan, Taiwan — marking its biggest Asia Pacific investment
  • The facility sits adjacent to Taiwan’s primary international airport, optimized for technology-related shipments
  • Approximately 80% of cargo flowing through the center consists of high-technology products
  • Applied Materials (AMAT) has designated this location as its primary Asian distribution point
  • The company is exploring potential flight operations to Kaohsiung, near TSMC’s emerging manufacturing complex

United Parcel Service (UPS) has inaugurated a state-of-the-art $100 million distribution facility in Taoyuan, Taiwan, representing the company’s most significant infrastructure investment across the Asia Pacific region. This strategic facility aims to support surging requirements from technology manufacturers, especially within Taiwan’s globally dominant semiconductor sector.


UPS Stock Card
United Parcel Service, Inc., UPS

Positioned strategically adjacent to Taiwan’s busiest international airport, the Taoyuan location offers optimal access for time-sensitive, high-value technology shipments. According to Lauren Zhao, who leads UPS Asia Pacific Supply Chain Solutions and Freight Forwarding operations, approximately 80% of cargo processed through this facility falls within the high-technology category.

Applied Materials (AMAT), America’s leading semiconductor equipment manufacturer, has selected this facility to serve as its central Asian distribution hub. Shares of AMAT climbed 3.37% following the announcement.

“Taiwan’s semiconductor sector stands unrivaled globally in terms of technological advancement,” Zhao stated during the facility’s opening ceremony. She emphasized that manufacturing capabilities associated with this industry represent areas where Taiwan maintains worldwide leadership.

TSMC, recognized as the planet’s leading contract chipmaker, serves as a primary catalyst for regional logistics demand. The company’s processors are integral to AI infrastructure development occurring across the globe, establishing Taiwan as an indispensable link in international supply networks.

Southern Taiwan Expansion Under Review

Sam Hung, who directs UPS operations across Japan, South Korea, and Taiwan, revealed that the logistics provider is evaluating flight service expansion to Kaohsiung in Taiwan’s southern region. This potential expansion hinges on demonstrated client requirements.

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Kaohsiung hosts TSMC’s ongoing construction of a substantial new manufacturing facility, forming part of an expanding semiconductor industrial zone in Taiwan’s southern territory. Should this industrial cluster develop as anticipated, UPS may find compelling business justification for establishing operations there.

The substantial $100 million capital commitment demonstrates the extent to which logistics infrastructure is being developed to support Taiwan’s chip manufacturing ecosystem. With TSMC functioning as the nexus of AI hardware supply chains, rapid movement of equipment and materials has emerged as a strategic imperative for companies like Applied Materials.

Strategic Partnership with Applied Materials

Applied Materials selecting the Taoyuan center as its Asian operational headquarters provides UPS with a foundational client deeply embedded in chip production. AMAT produces the sophisticated machinery that fabricates semiconductors — meaning its logistics requirements directly correlate with semiconductor manufacturing timelines.

The UPS installation enables both organizations to react more rapidly to fluctuations in chip production requirements throughout the region. Such responsiveness proves critical when equipment delivery delays can potentially halt entire fabrication operations.

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Currently, UPS maintains operations exclusively through Taoyuan airport within Taiwan. The Kaohsiung service expansion remains under active evaluation as of March 25, 2026.

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Bitcoin (BTC) price, stocks rise as dollar weakens, oil falls: Crypto Daybook Americas

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CD20

By Omkar Godbole (All times ET unless indicated otherwise)

Bitcoin and the broader crypto market are holding firm alongside U.S. stock futures as oil prices, bond yields and the Dollar Index ease on signs that ceasefire talks between the U.S. and Iran could begin as early as Thursday.

Still, nothing is confirmed, and it may be too soon to position for a full return to normalcy, according to some observers.

“We are not geopolitical experts, but we would have thought Iran would have maximum leverage of high energy prices going into any negotiation,” analysts at ING said. “Thus, it is probably too early to expect any big drop in energy prices or a much softer dollar this week.”

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Skepticism remains on the Iranian side as well. According to Axios, officials have told Pakistan, Egypt and Turkey that recent U.S. military movements have deepened suspicions that Trump’s peace proposal may be just a ruse.

Macro conditions are also turning less supportive. The U.S. money market curve has now priced out any Fed easing this year, a sharp shift from earlier expectations of at least two 25-basis-point cuts, which were seen as a key bullish catalyst for BTC and other risk assets.

On the crypto front, the news flow hasn’t helped either. Circle Internet’s (CRCL) stock slid Tuesday after a leaked draft of the Clarity Act suggested limits on paying interest on idle stablecoin balances. Meanwhile, Arkham Intelligence reported that Bhutan may be selling roughly $30 million worth of BTC, with the government still holding 4,453 coins valued at about $315.9 million.

Despite these headwinds, bitcoin continues to hold above $70,000, with dips proving short-lived. A market that refuses to fall on negative news often signals underlying strength, potentially setting the stage for a larger move higher. Dynamics of bitcoin’s impending options expiry on Friday point to a potential for a bounce to $75,000. Stay alert!

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Read more: For analysis of today’s activity in altcoins and derivatives, see Crypto Markets Today

What to Watch

For a more comprehensive list of events this week, see CoinDesk’s “Crypto Week Ahead“.

  • Crypto
  • Macro
    • March 25, 8:30 a.m.: U.S. Import Prices MoM for February est. 0.2% (Prev. 0.2%); Export Prices MoM (Prev. 0.6%)
  • Earnings (Estimates based on FactSet data)

Token Events

For a more comprehensive list of events this week, see CoinDesk’s “Crypto Week Ahead“.

  • Governance votes & calls
  • Unlocks
    • March 25: Humanity (H) to unlock 4.19% of its circulating supply worth $10.1 million.
  • Token Launches

Conferences

For a more comprehensive list of events this week, see CoinDesk’s “Crypto Week Ahead“.

Market Movements

  • BTC is up 2.21% from 4 p.m. ET Tuesday at $71,509.33 (24hrs: +0.68%)
  • ETH is up 2.99% at $2,184.78 (24hrs: +1.43%)
  • CoinDesk 20 is up 2.73% at 2,065.01 (24hrs: +0.93%)
  • Ether CESR Composite Staking Rate is down 7 bps at 2.74%
  • BTC funding rate is at 0.0005% (0.4960% annualized) on Binance
CD20
  • DXY is down 0.15% at 99.29
  • Gold futures are up 3.13% at $4,536.90
  • Silver futures are up 4.38% at $72.31
  • Nikkei 225 closed up 2.87% at 53,749.62
  • Hang Seng closed up 1.09% at 25,335.95
  • FTSE 100 is up 0.85% at 10,049.44
  • Euro Stoxx 50 is up 1.39% at 5,658.96
  • DJIA closed on Tuesday down 0.18% at 46,124.06
  • S&P 500 closed down 0.37% at 6,556.37
  • Nasdaq Composite closed down 0.84% at 21,761.89
  • S&P/TSX Composite closed up 0.18% at 31,941.59
  • S&P Latin America 40 closed up 0.43% at 3,480.97
  • U.S. 10-Year Treasury rate is up 6 bps at 4.39%
  • E-mini S&P 500 futures are up 0.68% at 6,651.25
  • E-mini Nasdaq-100 futures are up 0.86% at 24,422.75
  • E-mini Dow Jones Industrial Average futures are up 0.67% at 46,727.00

Bitcoin Stats

  • BTC Dominance: 58.97% (0.16%)
  • Ether-bitcoin ratio: 0.03055 (-0.04%)
  • Hashrate (seven-day moving average): 977 EH/s
  • Hashprice (spot): $33.72
  • Total fees: 2.5 BTC / $175,777
  • CME Futures Open Interest: 116,345 BTC
  • BTC priced in gold: 15.7 oz.
  • BTC vs gold market cap: 4.77%

Technical Analysis

Daily swings in the bitcoin-gold ratio in candlestick format. (TradingView)
Bitcoin-gold ratio. (TradingView)
  • The chart shows daily swings in the bitcoin-gold ratio since July last year.
  • The ratio has bounced 23% this month, signaling bitcoin’s outperformance relative to gold.
  • However, the broader bitcoin bear market is still intact and the ratio had yet to top the trendline representing the slide since August 2025.

Crypto Equities

  • Coinbase Global (COIN): closed on Tuesday at $181.04 (-9.76%), +2.94% at $186.36 in pre-market
  • MARA Holdings (MARA): closed at $8.25 (-7.41%), +3.52% at $8.54
  • Riot Platforms (RIOT): closed at $14.33 (-0.28%), +2.72% at $14.72
  • Core Scientific (CORZ): closed at $16.85 (+1.63%), +2.43% at $17.26
  • CleanSpark (CLSK): closed at $9.58 (-4.01%), +2.61% at $9.83
  • Exodus Movement, Inc. (EXOD): closed at $7.20 (-11.33%), +6.39% at $7.66
  • CoinShares Bitcoin Mining ETF (WGMI): closed at $38.87 (-1.35%)
  • Circle Internet Group (CRCL): closed at $101.17 (-20.11%), +3.04% at $104.25
  • Bullish (BLSH): closed at $37.37 (-5.51%), +1.61% at $37.97

Crypto Treasury Companies

  • Strategy (MSTR): closed at $136.25 (-1.41%), +2.97% at $140.29
  • Sharplink (SBET): closed at $7.17 (-4.53%), +3.63% at $7.43
  • Galaxy Digital (GLXY): closed at $21.30 (-1.84%), +2.58% at $21.85
  • Strive Asset Management, LLC (ASST): closed at $9.93 (-4.89%), +2.01% at $10.13
  • Upexi (UPXI): closed at $1.11 (-5.13%), +2.70% at $1.14
  • Lite Strategy (LITS): closed at $1.20 (+1.69%)

ETF Flows

Spot BTC ETFs

  • Daily net flows: -$66.6 million
  • Cumulative net flows: $56.31 billion
  • Total BTC holdings ~1.29 million

Spot ETH ETFs

  • Daily net flows: -$40.7 million
  • Cumulative net flows: $11.7 billion
  • Total ETH holdings ~5.79 million

Source: Farside Investors

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Alphabet (GOOGL) Shares Fall to 2026 Low

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Alphabet (GOOGL) Shares Fall to 2026 Low

As the chart shows, Alphabet (GOOGL) shares have dropped to their lowest level of 2026, with trading closing well below the psychological $300 per share mark.

Why Have Alphabet (GOOGL) Shares Declined?

The bearish move is driven by a combination of factors, including:

→ Escalating geopolitical tensions. With the prospect of a prolonged US conflict with Iran becoming more relevant, market participants may be reducing exposure to risk assets, favouring stability instead. Technology stocks are particularly vulnerable in such an environment.

→ In March, it was reported that Alphabet plans to allocate $175–185 billion to AI infrastructure this year. These expenditures could weigh on profit margins, while a quick return on investment is far from guaranteed.

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In addition, media reports point to pressure from antitrust regulators, downward revisions to price targets by analysts, and share sales by GOOGL executives. Meanwhile, the chart and volume analysis highlight a significant shift in market sentiment.

Technical Analysis of GOOGL Shares

Note the price behaviour during periods of exceptionally high trading volumes. The arrows indicate:

→ A move above the $300 psychological level accompanied by a bullish gap — a sign of emotional buying momentum that gradually faded.

→ A sharp decline in February on very high volumes, suggesting that bears attempted to seize control. The formation of lower highs and lower lows confirms their success.

Yesterday, GOOGL opened with a bearish gap and closed at the low of a wide candle — a clear sign that sellers are strengthening their grip.

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Bulls need to regain control quickly; otherwise, if bearish dominance persists:

→ Alphabet (GOOGL) shares may continue to decline within the red descending channel;
→ The $300 level could act as psychological resistance during any recovery attempts;
→ A move towards the $250 level cannot be ruled out.

Buy and sell stocks of the world’s biggest publicly-listed companies with CFDs on FXOpen’s trading platform. Open your FXOpen account now or learn more about trading share CFDs with FXOpen.

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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Pump.fun Tightens Creator Fee Controls in New Update

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Pump.fun Tightens Creator Fee Controls in New Update

Memecoin launchpad Pump.fun introduced a new restriction on creator fee settings, limiting token deployers to a single post-launch change in how fees are distributed on the platform. 

In a post on X, Pump.fun co-founder Alon Cohen said the update aims to reduce “griefing” — where creators alter fee recipients after a token gains traction — and other forms of manipulation tied to fee redirection, where token creators can alter who receives fees after a coin gains traction. 

Under the change, each token will have one opportunity to redirect creator fees to a different wallet, after which the configuration becomes permanently locked. 

Pump.fun’s latest update follows a broader overhaul announced in January, when the platform acknowledged that its creator-fee model had skewed incentives by disproportionately rewarding token deployers over traders.

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Source: Alon Cohen

Pump.fun’s broader attempts to shift incentives to traders

On Jan. 10, the platform introduced changes like multi-wallet distribution and post-launch controls, aiming to improve transparency and better align rewards with trading activity. 

On Feb. 17, Pump.fun introduced “Cashback Coins,” requiring creators to choose at launch whether fees go to themselves or are redirected to traders, with that high-level model locked in once selected. 

The change aimed to rebalance the distribution of rewards between token deployers and traders. However, while the overall fee model was fixed at launch, creators or coin admins could still adjust the specific wallets receiving those fees and how they were distributed after a token went live.

Related: ‘Hawk Tuah’ girl Haliey Welch says memecoin implosion ‘traumatized’ her

This meant that even if the model didn’t change, the underlying recipients could, creating potential trust issues for traders. The latest update narrows that flexibility by allowing only a single post-launch change to fee recipients, after which the configuration is permanently locked.

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Early community reactions suggest the change may do little to address broader trading dynamics on the platform. X user gake said the change might not help much, while another user, tom, described it as a “drop in the bucket” that shows the team is at least acknowledging the issue.

Pump.fun activity drops as fees and volume fall year over year

Pump.fun’s shift in its incentive structure comes as its fees have declined from their peak. DefiLlama data shows that in January 2026, the platform recorded $31.8 million in fees, down about 75% from $148 million in January 2025, its best-performing month to date.

In February 2026, the platform recorded $25 million in revenue, down 66% from nearly $75 million in February 2025.

Pump.fun’s monthly revenue chart. Source: DefiLlama

The platform’s trading volume has followed a similar pattern. According to DefiLlama, Pump.fun recorded monthly volume of over $11.6 billion in January 2025, which fell to about $2.1 billion in January 2026, a decline of roughly 81%.

In February 2026, monthly volume totaled about $1.91 billion, down 68% from $6.1 billion in February 2025.

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