The recently launched altcoins plummeted after a major airdrop

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The project behind the token, Magic Eden (ME), saw a surge in activity within the first hour, during which over 60 million tokens were claimed. The remaining 25% is expected to be gradually claimed over the next few days, which could minimize the risk of sudden sell-offs that could severely impact the token's value.

Wallet data shows that nearly 80% of claimants have sold their entire allocation, using the airdrop as an opportunity for short-term liquidity. Among the 133,888 wallets that participated, only 8.3% chose to retain all their tokens, and less than 1% of participants opted to buy more ME after the airdrop. This highlights the limited enthusiasm for the token as a long-term investment.

Currently, ME's price hovers near a key support level. Falling below $4 could trigger further declines, while maintaining above this level could signal a potential rebound. Resistance levels of $4.69 and $5.10 remain a challenge, and breaking through these resistance levels is crucial for any upward momentum.

The mixed views on airdrops highlight the difficulty of maintaining long-term engagement after such events. The challenge facing Magic Eden now is to rekindle interest and demonstrate its value to investors, which will be key to stabilizing and improving the token's market performance.

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