Over the last 24 hours, the price of ME, the token that drives the Magic Eden NFT marketplace, has dropped by 54%. This drop follows the conclusion of its widely criticized December 10 airdrop of 125 million tokens.
Impact of the Airdrop on ME Token
Magic Eden, an NFT marketplace, airdropped 125 million ME tokens on Tuesday, which is 12.5% of its 1 billion total supply. The value of ME immediately increased after the airdrop, reaching $30 on some markets.
Although many users felt frustrated by the convoluted claim procedure and technological problems, which sparked a wave of sell-offs that saw ME’s value plummet 54% in a single day. ME is currently trading for $4.17.
Source: Coinmarketcap.com
Through an analysis of price fluctuations over a specified period, the BOP indicator calculates the strength of buyers versus sellers. When an asset’s BOP is negative, sellers are in control, which suggests that the market is bearish or that the asset’s price is under pressure to decline.
Relative Strength Index Reflects Bearish Trends
Furthermore, this negative forecast is supported by ME’s Relative Strength Index. This is still on the decline as of the time of writing, at 47.21.
The overbought and oversold market conditions of an asset are gauged using the RSI indicator. Values above 70 indicate that the asset is overbought and in need of a correction. Its range is 0 to 100.
Conversely, numbers below 30 suggest that the asset is oversold and could rise again. An RSI of 47.21 indicates that selling pressure is gradually increasing as bearish sentiment intensifies.
ME Token at Risk of New All-Time Low
ME is currently trading at $4.17, just above its record low of $4.13. The price will drop to this support if ME holders keep selling off, and if the bulls are unable to maintain it, it may break below it.
Nevertheless, the price of the Magic Eden token can adjust and rise approaching $9.66 if demand for it increases
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