KLAY suffered a dramatic intraday collapse, falling more than 67% in a single hour as panic selling swept through the token's market. The sudden decline took KLAY from a recent high of $0.1255 to as low as $0.040854, leaving traders scrambling to reassess positions amid thin liquidity and elevated volatility.
The first wave of selling was recorded on October 19, 2026, when KLAY dropped 67.45% in one hour to $0.040854. Trading volume at that time reached $47,767, while the token was already down about 4.04% over the preceding 24 hours. A second report on October 20 showed the token still under pressure, trading at $0.041137 after another sharp move of 67.22% within 60 minutes, with volume near $15,145.97. The 24-hour change had narrowed to roughly -0.97%, but bearish sentiment remained dominant.
Market observers pointed to cascading liquidations in derivative markets as a likely catalyst. When leveraged positions are forcibly closed, downward price pressure can accelerate quickly, especially in tokens with relatively thin order books. The broader crypto market was also displaying mixed signals at the time, contributing to uncertainty and reinforcing the sell-off.
Traders are now focused on key technical levels. Immediate support is seen near $0.040, with resistance around $0.045 to $0.050. A break below support could trigger another leg lower, while a recovery above resistance may help restore confidence. The Fear & Greed Index indicated heightened fear among market participants, a condition that often amplifies selling in volatile crypto assets.
