The price drop of over 5% in a single day is a significant short-term bearish signal, especially when accompanied by a decrease in trading volume, which may indicate reduced investor interest or selling pressure. The slight decrease in circulating supply typically would not have a significant impact on price, but it's worth noting as part of the overall market conditions. Given the recent positive trend over the past week, this could be a temporary retracement, but the short-term impact is likely negative.