The price of ME, the token that powers the Magic Eden NFT marketplace, has declined 54% over the past 24 hours. This drop comes after the completion of its highly criticized 125 million token airdrop conducted on December 10.
As of this writing, ME trades at $4.99 and is poised to extend this decline.
Magic Eden’s Token Faces Headwinds
On Tuesday, NFT marketplace Magic Eden conducted the airdrop of 125 million ME tokens, representing 12.5% of its total supply of 1 billion. Following the airdrop, ME’s value surged instantly, hitting $30 on certain exchanges.
However, the complicated claim process and technical issues frustrated many users, leading to a wave of sell-offs that caused ME’s value to drop 54% in just 24 hours. As of this writing, ME trades at $4.99.
BeinCrypto’s assessment of the ME/USD one-hour chart confirms the uptick in bearish sentiments toward the altcoin. This is reflected by its Balance of Power indicator, whose value is below zero at -0.70 at press time.
The BOP indicator measures the strength of buyers versus sellers by analyzing price movements within a given period. When an asset’s BOP is negative, sellers dominate, indicating bearish market sentiment or downward pressure on the asset’s price.
Additionally, ME’s Relative Strength Index confirms this bearish outlook. At press time, this is at 47.21 and remains in a downward trend.
The RSI indicator measures an asset’s overbought and oversold market conditions. It ranges between 0 and 100, with values above 70 suggesting that the asset is overbought and due for a correction.
On the other hand, values below 30 indicate that the asset is oversold and may witness a rebound. An RSI reading of 47.21 confirms a gradual uptick in selling pressure as bearish sentiment gains momentum.
ME Price Prediction: Selloffs Put Token at Risk of Dropping to All-Time Low
At press time, ME trades at $4.99, slightly above its all-time low of $4.13. If ME holders continue to sell off, the price will plunge to this support and may break below it if the bulls fail to defend it.
However, if demand for the Magic Eden token resurges, its price may correct and climb toward $9.66.
Disclaimer
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