In all probability there is no fundamental reason for the drop....

In all probability there is no fundamental reason for the drop. After two spikes to the high 3s, the second on low volume that didn't sustain, big holders are probably content to let the price fall off & may be helping it do so with small sells here and there.

The hope is to trigger stops, scare nervous holders who bought in the 3s into selling and keep enthusiasm suppressed for a while, so they can gradually accumulate at a better price. A tree-shake in other words. I looked at the possibility of this happening in the chart I posted a few days back.

Hopefully there'll be fresh buying coming in without too much of a drop and a steady increase from there, but you can never assume that'll happen in ASX penny stocks these days :\