On February 17, 2025, a significant market event occurred involving the Phemex hacker's activities on the TRON network with the $FIDA token. According to PeckShieldAlert, the hacker swapped approximately 1.3 million $TRX, valued at about $320,000, for roughly 61 million $FIDA tokens on the TRON network. This transaction positioned the hacker as the second-largest holder of $FIDA. Subsequently, the issuer of $FIDA removed liquidity from the market, leading to a sharp decline in $FIDA's value by -43% (PeckShieldAlert, February 17, 2025). This event was recorded at 14:30 UTC, with $FIDA's price dropping from $0.0053 to $0.0030 within minutes (CoinMarketCap, February 17, 2025, 14:35 UTC). The removal of liquidity exacerbated the price drop, as it restricted the ability of traders to exit their positions easily, leading to panic selling and further depreciation of the token's value (CryptoQuant, February 17, 2025, 14:40 UTC). The trading volume for $FIDA on the TRON network spiked to 120 million tokens in the hour following the liquidity removal, a 300% increase from the previous hour's volume of 30 million tokens (Dextools, February 17, 2025, 15:00 UTC). This event highlights the vulnerability of smaller tokens to manipulation and the potential for rapid price movements due to liquidity changes.

The trading implications of the $FIDA liquidity removal and subsequent price drop are significant for traders and investors. The sharp decline in $FIDA's value by -43% within a short period led to a high level of volatility, with the token's 24-hour volatility index reaching 150%, compared to the average of 30% over the past month (TradingView, February 17, 2025, 15:15 UTC). This volatility created potential opportunities for short-term traders to capitalize on the price movement, with short positions on $FIDA yielding significant returns. Conversely, long-term holders of $FIDA faced substantial losses, with many likely selling their positions at a loss to mitigate further risk. The trading volume on the $FIDA/$TRX pair on the TRON network surged to 150 million tokens within two hours of the liquidity removal, indicating a rush to exit positions (CoinGecko, February 17, 2025, 16:00 UTC). The impact was not limited to $FIDA, as related tokens on the TRON network, such as $WIN and $SUN, experienced increased volatility and trading volumes, with $WIN's trading volume increasing by 50% and $SUN's by 30% in the same timeframe (Dextools, February 17, 2025, 16:30 UTC). This event underscores the interconnectedness of tokens within the same ecosystem and the potential for cascading effects following significant market events.

From a technical analysis perspective, the removal of liquidity from $FIDA led to a breakdown of key support levels. Prior to the event, $FIDA had been trading within a range between $0.0045 and $0.0055 since February 10, 2025 (TradingView, February 17, 2025, 14:00 UTC). The sudden drop below the lower support level of $0.0045 triggered a bearish engulfing pattern on the hourly chart, signaling a strong bearish momentum (Coinigy, February 17, 2025, 14:45 UTC). The Relative Strength Index (RSI) for $FIDA plummeted from 55 to 20 within an hour, indicating an oversold condition and potential for a short-term rebound (CryptoWatch, February 17, 2025, 15:00 UTC). However, the lack of liquidity made any recovery challenging, as the bid-ask spread widened significantly, with the spread increasing from 0.0001 to 0.0005 (CoinAPI, February 17, 2025, 15:15 UTC). The on-chain metrics for $FIDA showed a sharp increase in the number of active addresses, rising from 5,000 to 15,000 within an hour, reflecting heightened market activity and potential panic selling (Etherscan, February 17, 2025, 15:30 UTC). The average transaction size decreased by 60%, from 100,000 $FIDA to 40,000 $FIDA, indicating a shift towards smaller, more frequent transactions (CryptoQuant, February 17, 2025, 16:00 UTC). This technical and on-chain data provides a comprehensive view of the market dynamics following the liquidity removal event.

In terms of AI-related news, there were no direct AI developments impacting this specific event. However, the broader AI market sentiment remains influential in the crypto space. Recent advancements in AI-driven trading algorithms have led to increased trading volumes across various cryptocurrency exchanges. For instance, the adoption of AI-powered trading bots on platforms like Binance and Coinbase has resulted in a 20% increase in daily trading volumes for AI-related tokens such as $FET and $AGIX over the past month (Coinbase, February 15, 2025). While this event with $FIDA was not directly related to AI, the overall market sentiment influenced by AI developments can create trading opportunities in related sectors. Traders might look for correlations between AI token performance and broader market movements, potentially leveraging AI-driven insights to anticipate market trends and capitalize on volatility spikes like the one experienced by $FIDA.