Why the Magic Eden Token May Lose More Of Its Value
The Price of ME, the Token Powering Magical Eden NFT marketdown 54% in the past 24 hours. The drop follows the completion of the much-criticized 125 million token airdrop on December 10.
As of this writing, ME is trading at $4.99 and is expected to extend this decline.
Magic Eden’s Token Faces Resistance
Tuesday, NFT market Magic Eden Make an airdrop 125 million ME tokens, accounting for 12.5% of its total supply of 1 billion. Immediately after the airdrop, the value of ME surged, reaching $30 on some exchanges.
However, the complex claims process and technical issues frustrated many users, triggering a wave of selling that saw ME’s value drop by 54% in just 24 hours. As of this writing, ME is trading at $4.99.
Evaluation of BeinCrypto ME/USD one hour chart Confirming the rise in bearish sentiment towards altcoins. This is reflected in its balance of power indicator, which has a value below zero at -0.70 at press time.
The balance of payments indicator measures the strength of buyers and sellers by analyzing price movements over a given period. When an asset’s balance of payments is negative, sellers dominate, indicating bearish market sentiment or downward pressure on the asset price.
Additionally, ME’s relative strength index also confirms this bearish outlook. As of press time, the value is 47.21, still in a downward trend.
this relative strength index This indicator measures overbought and oversold market conditions for an asset. It ranges from 0 to 100, with values above 70 indicating that the asset is overbought and needs to correct.
On the other hand, values below 30 indicate that the asset is oversold and may be due for a rebound. The RSI reading is 47.21, confirming that selling pressure is gradually increasing as bearish sentiment increases.
ME Price Prediction: Sell-off puts coin at risk of falling to all-time lows
At press time, ME was trading at $4.99, just above its all-time low of $4.13. If ME holders continue selling, the price will plummet towards this support level, which could fall below it if the bulls fail to defend this support level.
However, if demand for Magic Eden tokens picks up, its price may correct and climbed to $9.66.
Disclaimer
conform to trust project Guide, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our terms and Conditions, privacy policyand Disclaimer Updated.
