The $FUEL Network price has plummeted 25% in the last 24 hours to trade at $0.05266 as of 7:10 a.m. EST on a 415% pump in trading volume to $38 million.

This price drop comes despite Fuel’s announcement of a token airdrop starting Dec. 19 in which 10% of the total supply will be distributed to over 200,000 wallets.

The allocation includes 28% for phase-1 pre-depositors, 20% for Fuel bridge users, and 12.5% for NFT collectors, with claims open for one month.

Fuel is facing bearish sentiment due to scam allegations involving discounted sales, and reliance on escrow-only transactions that highlight trust issues.

Additionally, skepticism about its competitiveness compared to stronger projects like Ethereum and Solana, combined with unfavorable market conditions, has further dampened investor confidence, leading to concerns about its future viability.

Fuel Network Price May See An Uptrend

The FUEL/USD chart on the 5-minute timeframe indicates a sharp upward price movement, followed by a sharp pullback. FUEL is currently trading at $0.05722 , reflecting a 3.54% decline from its recent high.

The price action suggests that the token experienced a parabolic curve pattern, often signaling aggressive buying interest that can lead to temporary overextensions.

The support level is established near $0.045, where the price consolidated before breaking out. This level is crucial as it marks the base of the parabolic movement and could serve as a strong area of buying interest if the price retraces further.

The RSI (14) stands at 65.15, indicating bullish momentum but showing signs of potential overbought conditions. A move below 70 on the RSI suggests that the immediate buying pressure might be easing, aligning with the recent price pullback.

The MACD appears to reflect bullish momentum, with the signal line and MACD line above the zero level. However, the gap between these lines seems to be narrowing, hinting at weakening momentum.

The Fuel Network price is trading near the 50-MA, which could act as dynamic support in the short term. If the price holds above the $0.055 level, a retest of the recent high around $0.0606 is possible. Conversely, a break below $0.055 could lead to further downside, potentially testing the $0.045 support zone.

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