Start by isolating mechanics from structure.

A liquidity issue is microstructural. Symptoms include wide spreads, shallow depth, high slippage, and exaggerated price swings on relatively small trades. If modest order size moves price materially, or volatility compresses once additional depth is deployed, the problem is likely liquidity infrastructure.

A tokenomics issue is structural. Indicators include persistent sell pressure from unlocks or emissions, concentrated ownership, weak demand drivers, or insufficient utility to absorb circulating supply. If price continues trending down despite adequate depth and tight spreads, supply–demand imbalance is likely the root cause.