COOKIE -79.24% on Short-Term Profit-Taking After Major Gains

A surge in short-term profit-taking has led to a sharp correction in COOKIE’s price on August 12, 2025, as the asset fell 25.76% within 24 hours to $0.1553, marking a reversal in investor sentiment following a sustained rally.

Short-Term Volatility Spikes Amid Market Rotation

The recent sell-off follows a 265.08% gain in the past week and a 551.77% rise over the last 30 days, which had drawn significant retail and institutional attention. However, as momentum-driven capital began to rotate out of the asset, pressure mounted on the short-term price. Analysts observed that the decline appears to reflect the natural exhaustion of a fast-moving rally rather than a fundamental deterioration in the asset’s underlying profile.

Market Reaction to Regulatory Clarity

One of the key factors driving the recent rally was the release of a comprehensive regulatory framework outlining compliance requirements for token issuers. The new rules, which became effective earlier this month, are widely seen as a long-term positive for the asset class. COOKIE’s operators have already submitted their compliance documentation, and the project is expected to achieve full regulatory alignment by the end of Q3 2025.

Capital Flow Shifts Impact Short-Term Dynamics

Despite the sharp drop, the broader trend remains one of strong demand for the asset. The 265% weekly increase suggests that capital inflows have been robust, fueled in part by renewed interest from on-chain traders and decentralized finance (DeFi) participants. However, the recent correction highlights the sensitivity of the market to short-term capital flow shifts.

Long-Term Gains Offset Short-Term Decline

While the 24-hour decline is steep, COOKIE’s performance over the past year remains significantly positive on a longer-term basis. The 551.77% increase over the past 30 days underscores strong accumulation, and the total market value remains elevated compared to early 2025 levels.

Analysts Cautious on Near-Term Outlook

Analysts project that the current price correction may persist for several trading sessions, as investors digest recent gains and reassess risk exposure. However, no major technical breakdowns have been observed, and liquidity remains intact. Given the regulatory progress and growing on-chain activity, market observers continue to view the long-term outlook as constructive, despite the recent volatility.