The price of ME, the Token that operates the Magic Eden NFT marketplace, has dropped 54% in the past 24 hours. This drop comes after the completion of the highly criticized 125 million Token airdrop, which took place on December 10.
At the time of this writing, ME trades at $4.99 and is likely to continue this downtrend.
Tokens of Magic Eden Facing Adversity
On Tuesday, Magic Eden market airdropped 125 million ME Tokens, representing 12.5% of its total supply of 1 billion tokens. After this operation, the value of ME skyrocketed immediately, reaching 30 USD on some exchanges.
However, the complicated request process and technical issues frustrated many users, leading to a wave of sell-offs that caused ME’s price to drop 54% in just 24 hours. At the time of this writing, ME trades at $4.99.
TinTucBitcoin’s review of the one-hour ME/USD chart confirms the increase in bearish sentiment towards the coin. This is demonstrated by its Balance of Power indicator, which is below zero, at -0.70 at press time.
The BOP indicator measures the strength between buyers and sellers by analyzing price fluctuations over a given period of time. When an asset’s BOP is negative, sellers dominate, indicating negative market sentiment or downward price pressure on the asset.
Additionally, ME’s Relative Strength Index also confirms this bearish outlook. At the time of publication, this index was at 47.21 and still in a downward trend.
The RSI index measures the market’s overbought and oversold conditions for assets. It ranges from 0 to 100, with values above 70 suggesting that the asset is overbought and is likely to correct.
On the other hand, a value below 30 indicates that the asset is oversold and is likely to recover. The RSI of 47.21 confirms that selling pressure is gradually increasing as bearish sentiment prevails.
ME Price Forecast: Sell-off Pushes Tokens to Risk of Falling to Record Lows
At the time of publication, ME was trading at $4.99, slightly above its record low of $4.13. If ME holders continue to sell off, the price will plummet to this support level and could break it if the bulls cannot defend.
However, if demand for the Magic Eden Token increases again, its price could correct and climb to $9.66.
