Yes, it’s sinking, but this drop is caused by another problem.

The pessimistic interpretation says that this is caused by a pump and dump scheme.

The optimistic interpretation says that Auroracoin was heavily (50%) premined. The premined coins were stored and the amount was approximately 100x the amount of the new coins. In the last 4 days they started to distribute the premined coins to the Islanders. So the amount of circulation coins increased heavily, and the price dropped. It’s like inflation.

I don’t have the actual numbers, but I think that the distribution of the coins was unsuccessful. If it were successful the price would have fallen even more.