Magic Eden Token Volume Crashes $4 Billion: ME Price Impact
ME, the token launched by leading Magic Eden NFT marketits trading volume dropped significantly. The crash may be related to the token’s reduced interaction since its airdrop a few days ago.
However, transaction volume is not the only part of the Magic Eden ecosystem that is affected. this On-chain analysis Revealing what else is out there in the coming days and how prices may change.
Interest is waning in two major areas of Magical Eden
Santiment data shows, The size of Magic Eden is close to $5.5 billion on Wednesday, December 11th. As of this writing, the same metric has fallen to $1.58 billion, indicating a decrease of approximately $4 billion.
Trading volume represents the total number of buy and sell transactions for a specific cryptocurrency asset within a given time frame, typically measured on a daily basis. When transaction volume increases, it means there is a high volume of interaction with the cryptocurrency.
On the other hand, lower volume indicates less buying and selling, which makes it difficult for price action to move higher. Interestingly, the decline in trading volume coincides with ME price reduced by 54% Since launching on Tuesday. If trading volumes continue to fall, the altcoin’s value may not rebound as quickly from $5.15.
As with the token’s trading volume, the total trading volume NFT transaction Volume also fell. NFT trading volume Represents the total value of the transactionmeasured in U.S. dollars, involves non-fungible tokens within a specific market during a given measurement period.
According to on-chain data, the transaction volume on December 4 exceeded $3 million. As of this writing, the value has dropped to $154,000, indicating the number of NFTs being bought and sold on-chain Magic Eden Market No longer at the heights of last week.
If the platform continues to experience this decline, it could also impact demand for the ME token, which is also the market’s utility token.
ME Price Prediction: Losing $5 Support Soon
At first glance, the ME/USD 1 hour chart shows Altcoins Trading within a descending channel. A descending channel is characterized by lower highs and lower lows, indicating a bearish market trend. This pattern shows that sellers have the upper hand, continuing to push prices lower.
Considering that this happens as the number of Magic Eden tokens decreases, the price could be even lower. If this is still the case then ME prices may drop It will rise to $4.93 in the short term.
On the other hand, if the bulls maintain the price at the $5.13 support, this prediction may not happen. In this case, the cryptocurrency’s value could climb to $7.19.
Disclaimer
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