ME token crashes, plunging 54%! 125 million airdrop causes chaos, price drops to $5, is the historical low just around the corner?
Magic Eden (ME) is the native token of the NFT marketplace Magic Eden, and its price has dropped 54% in the past 24 hours. This decline occurred on December 10, after ME completed a controversial airdrop of 125 million tokens.
Currently, the trading price of ME has fallen to $4.99, and it may continue to drop.
On Tuesday, Magic Eden conducted an airdrop of 125 million ME tokens, accounting for 12.5% of its total supply. After the airdrop, ME's price soared at one point, reaching as high as $30 on some exchanges.
However, due to the cumbersome claims process for the airdrop, coupled with technical issues, many users felt frustrated, leading to a wave of sell-offs, causing ME's price to plunge 54% within 24 hours. The current trading price of ME is $4.99.
BeinCrypto analyzed the 1-hour chart of ME/USD, showing that bearish sentiment towards this token is intensifying. From the force balance indicator, the current value is -0.70, below zero, indicating stronger bearish sentiment.
Additionally, ME's Relative Strength Index (RSI) also supports this bearish expectation. As of now, the RSI is 47.21 and is still in a downward trend.
The RSI indicator is used to measure whether an asset is overbought or oversold, with a range of 0 to 100. When the RSI exceeds 70, it indicates that the asset may be overbought and may need to adjust.
As of now, ME's trading price is $4.99, slightly above the historical low of $4.13. If ME holders continue to sell, the price may return to this support level. If the bulls fail to hold this support level, ME's price could potentially break below this support and decline further.
