Xai's 10% drop after Binance airdrop and listing shakes crypto market confidence.
A fake XAI token crash exacerbates real XAI market turmoil, prompting investors to be cautious.
The oversold XAI/USD signals a potential market rebound amid downward pressure.
Xai, a layer 3 gaming token, saw a significant price drop of over 10%, a surprising turn of events in the cryptocurrency market. The drop closely followed its release and a major listing on the Binance exchange.
This sudden market reaction is causing concern and speculation among investors and market analysts. As a result, XAI's market capitalization and 24-hour trading volume fell by 9.93% and 58.32% to $163,081,855 and $114,039,627, respectively.
XAI/USD 24-hour price chart (source: CoinStats)
Additionally, the Xai Foundation's decision to conduct a major gaming token airdrop this year has contributed to the volatility. They distributed 125 million XAI tokens, or 5% of the total supply, to a select group of users. These included holders of specific Xai NFTs and participants operating access control nodes or validators. Before the airdrop, Xai enjoyed a market capitalization of over $154 million, which dropped sharply to around $70 million after the event.
Binance List
Additionally, the inclusion of XAI on Binance should have been a positive step. The XAI/FUSD trading pair has become available for spot trading, signaling a major step for Xai in gaining mainstream acceptance of the crypto market. However, the value of the token saw a decline instead of an expected rise.
To further complicate matters, the market has also been grappling with the emergence of a fake XAI token. This counterfeit version plunged 100% following a large exchange of tokens by the deployer's address, as reported by PeckShieldAlert. The fake token, initially confused with the real XAI, caused confusion and panic among investors, further lowering the value of the real XAI token.
XAI/USD Technical Analysis
The relative strength index (RSI) rating of 39.28 on the XAI/USD price chart indicates that the negative trend is strengthening. This trend suggests that selling pressure in the market is intensifying and further price declines are likely.
If the RSI falls below 30, it indicates that XAI/USD is becoming oversold. This trend could attract bargain-hunting buyers and temporarily reverse the downtrend. However, if the RSI continues to fall, it could signal continued bearish momentum and potentially lead to further price declines.
XAI/USD 3-hour price chart (source: TradingView)
Additionally, the stochastic RSI rating of 10.54 suggests that XAI/USD is currently in oversold territory. This trend further supports the possibility of a temporary reversal of the downtrend, as buyers could see this as an opportunity to enter the market at a discounted price. This change indicates that selling pressure has been exhausted, which could lead to a decrease in selling activity and an increase in buying activity.
The article Xai Token Falls Over 10% After Airdrop and Binance Debut appeared first on Coin Edition.
