Over the last 24 hours, the Scroll (SCR) token has lost almost 20% in value. The bearish mood is intensifying: more losses are ahead
The Ethereum layer-2 (layer-2) Scroll network has launched the $SCR
token. The long-awaited airdrop took place on October 22. However, many participants were dissatisfied with the amount of SCR received, which provoked a token sell-off.
The Scroll airdrop was the cause of the problems
The team's blog states that the #scroll airdrop distributed 5.5% of the total SCRs - 55 million out of 1 billion tokens - to early participants in the ecosystem. However, many users of the L2 network were disappointed with the amount of coins received and dissatisfied with the token distribution strategy. Many were angered that the project put Binance customers ahead of its loyal user base.
One user, Joshyy, described it as “the worst airdrop to date.” He “invested $60 in farming Scroll, only to receive $973 $SCR.” Another user stated that he dumped the tokens he received through Airdrop and withdrew all his assets from this blockchain network.
SCR owners are selling assets
Since the launch of SCR, there has been a surge in sales, which has led to the token value plummeting by double digits. The picture on the hourly chart predicts a possible further decline.
The bearish mood towards the altcoin is intensifying. This is evidenced by the negative value of the Bull Bear Power (BBP) indicator, which reached -0.10. It shows the balance of power between buyers and sellers in the market. The negative value of BBP indicates that the market is under the control of bears.
In addition, the price of SCR approached the lower boundary of the Bollinger Band (BB). This usually indicates a downtrend or selling pressure. Although the lower boundary usually serves as a support level, sustained trading in this area usually indicates bearish momentum.
SCR outlook: the coin is at risk of falling to new lows
SCR is now trading just above the $0.99 support level, an all-time low since launch. Further selling could push the price below this level as soon as possible.
However, if the market mood changes from bearish to bullish and the demand for SCR grows, the price will start growing towards the resistance at $1.55. Successfully overcoming this level will bring into play the next resistance at $1.72.
