Magic Eden (ME) Plummets 54% After Massive 125M Token Airdrop
ME, the base token of the Magic Eden NFT marketplace, has seen its price fall 54% in the past 24 hours. The drop came after the much-criticized 125 million token airdrop on December 10.
As of writing, ME is trading at $4.99 and is expected to extend its decline.
Magic Eden’s Token Faces Resistance
On Tuesday, NFT marketplace Magic Eden conducted an airdrop of 125 million ME tokens, representing 12.5% of its total supply of 1 billion. Following the airdrop, ME’s value instantly surged, reaching $30 on some exchanges.
However, a complex claims process and technical issues frustrated many users, sparking a wave of selling that caused ME’s value to fall 54% in just 24 hours. As of writing, ME is trading at $4.99.
BeinCrypto’s assessment of the ME/USD one-hour chart confirms an increase in bearish sentiment towards the altcoin. This is reflected in its Balance of Power indicator, which at press time reads -0.70, below zero.
The BOP indicator measures the strength of buyers versus sellers by analyzing price action over a given time period. When an asset’s BOP is negative, sellers are dominant, indicating bearish sentiment or downward pressure on the asset’s price.
Moreover, ME’s Relative Strength Index also confirms this bearish outlook. At press time, the index reads 47.21, still in a downtrend.
The RSI indicator measures overbought and oversold market conditions for an asset. It ranges from 0 to 100, with values above 70 indicating that an asset is overbought and in need of a correction.
On the other hand, values below 30 indicate that an asset is oversold and could see a bounce. An RSI reading of 47.21 confirms that selling pressure is gradually rising as bearish sentiment grows. ME Price Prediction: Sell-off puts token at risk of falling to all-time lows
At press time, ME is trading at $4.99, slightly above its all-time low of $4.13. If ME holders continue to sell, the price will fall to this support level, and if bulls fail to hold it, the price may fall below this support level.
