Scroll Price Dumps 18% a Day after Its Launch as Selling Pressure Bolsters

Highlights:

• Scroll price dips 18% a day after its market debut.
• Widespread dissatisfaction among recipients, who complained about the small amounts of SCR they received, has resulted in significant selling pressure on the token.
• With the token currently undervalued, the bulls may initiate a buy-back campaign, which would cause a rally in Scroll’s price.

The Scroll price has dwindled 18%, with the SCR/USD exchanging hands at $0.94 at press time. Despite the plunge, its trading volume has surged 27% to $279.95 million, suggesting growing interest in the token. 

Scroll, a zero-knowledge rollup for Ethereum, announced the launch of its native token, SCR, on October 22. The launch aimed to reward users who have contributed to Scroll’s development and encourage more decentralized involvement in the future. However, widespread dissatisfaction among recipients, who complained about the small amounts of SCR they received, has resulted in significant selling pressure on the token.

Scroll Airdrop Allocation

According to the press release, Scroll’s airdrop distributed 5.5% of the total SCR supply (55 million) out of 1 billion tokens—to early contributors within the ecosystem. Moreover, 40 million SCR was allocated to on-chain participants who earned 200 or more Scroll Marks for engaging with the layer-2 scaling network.

An additional 1% of the supply was evenly distributed across eligible wallets, while 0.5% was reserved as a “bonus” for users who met specific criteria. Some users have aired their disappointments via X, claiming that this is one of the worst airdrops ever. 

Dumped my Scroll airdrop and bridged all of my assets off the chain (one of the worst airdrops ever) pic.twitter.com/sIbwjOQWd1

— DYOR.eth (🦍,🦍) (@DyorDotEth) October 22, 2024

The widespread dissatisfaction with SCR airdrop has resulted in intense selling pressure, with the token trading at $0.94, its all-time low since its launch. However, with the token currently undervalued, will the bulls initiate a buy-back campaign?

Scroll Statistical Data

Based on CoinmarketCap data:

• SCR price now – $0.94
• Trading volume (24h) – $279.95 million
• Market cap – $179.29 million
• Total supply – 1 billion
• Circulating supply – 190 million 
• SCR ranking – #256

Scroll Technical Indicators Suggest Intense Selling Pressure

The Scroll price is in a downtrend, as per the 5-minute chart timeframe, as it moves below the key bullish indicators. SCR has experienced intense selling pressure since its launch causing its value to plummet by double digits. Based on the technical outlook, the SCR price is undervalued, which may enable the bulls to initiate a buy-back campaign at this level.

To start with, the Scroll price trades below the 50-day and 200-day Simple Moving Averages, tilting the odds towards the sellers. In this case, the $1.02 and $1.08 act as immediate resistance levels, cushioning the bulls against upward movement. 

The Relative Strength Index (RSI) is below the 30-oversold region, currently at 17.42. This signals that the token is oversold, which may prompt the bulls to initiate a buy-back campaign. In such a case, increased buying pressure will see the RSI jump to the 50-mean level, invalidating the bearish sentiment.

Worsening the outlook is the Moving Average Convergence Divergence (MACD), which upholds a bearish outlook. This is evident as the blue MACD line has flipped below the orange signal line, suggesting intense selling pressure.

Scroll Price Prediction

SCR currently trades at $0.94, its all-time low since it launched. Sustained selloffs amongst market participants will push SCR’s price below this level in the near term. However, if market sentiment shifts, with bulls initiating a buy-back campaign, SCR could witness a resurgence in demand. This will see the price initiate a meaningful uptrend and climb toward resistance at $1.02. A successful break above this level will make it rally toward the next resistance level at $1.08.