Ethereum layer-2 network Scroll launched its SCR token in a highly anticipated airdrop conducted on October 22. However, widespread dissatisfaction among recipients, who complained about the small amounts of SCR they received, has put significant selling pressure on the token.

Currently trading at $1.04, SCR has seen a 19% decline in the past 24 hours. As bearish sentiment continues to grow, the token’s price may face further losses. Here’s why.

According to a blog post from the team, Scroll’s airdrop distributed 5.5% of the total SCR supply—55 million out of 1 billion tokens—to early contributors within the ecosystem.

Of this amount, 40 million SCR was allocated to on-chain participants who earned 200 or more Scroll Marks, the platform’s reward points 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.

After the airdrop, some users of the L2 network, disappointed by the amount of coins they received, voiced their frustrations on X (formerly Twitter). One user, Joshyy, described it as the “worst airdrop so far,” sharing his disappointment after “farming Scroll with $60 only to receive 973 $SCR.”

Another user claimed to have dumped the tokens they received via the airdrop and bridged all their assets off the chain.

SCR Holders Sell Off Holdings

This surge in SCR’s selling pressure since its launch has caused its value to plummet by double digits. BeInCrypto’s assessment of its technical setup on an hourly chart signals the possibility of an extended decline.

For one, the bearish sentiment trailing the altcoin continues to grow, as evidenced by the negative value of its Bull Bear Power (BBP), which stands at -0.10 as of this writing.

Read more: Best Upcoming Airdrops in 2024

This indicator measures the strength of buyers and sellers in the market. A negative BBP reading signals that sellers are in control and the market is experiencing downward pressure.

Furthermore, SCR’s price trades near the lower band of its Bollinger Band (BB) indicator which measures its market volatility. Trading near this level usually indicates that the market is in a downtrend or facing selling pressure. This lower band usually serves as a support level, but if the price continues hugging this band, it reflects sustained bearish momentum.

SCR Price Prediction: Coin Risks Dropping to New Lows

SCR currently trades at $1.04, just above support formed at $0.99, representing its all-time low since it launched. Sustained selloffs amongst market participants will push SCR’s price below this level in the near term. 

Read more: What are Crypto Airdrops?

However, if market sentiment changes from bearish to bullish and SCR witnesses a resurgence in demand, its price will initiate an uptrend and climb toward resistance at $1.55. A successful break above this level will make it rally toward the next resistance level at $1.72.

Bitcoin price started a downside correction and tested the $66,500 zone. BTC is now consolidating and might aim for a fresh increase above $67,800.

• Bitcoin struggled to test the $70,000 resistance zone and started a downside correction.
• The price is trading below $67,500 and the 100 hourly Simple moving average.
• There is a short-term contracting triangle forming with support at $67,100 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start a fresh increase unless there is a close below the $66,500 zone.

Bitcoin Price Starts Consolidation Phase

Bitcoin price struggled to continue higher toward the $70,000 level and started a downside correction. There was a move below the $68,500 and $67,500 levels.

The price even tested the $66,500 support zone. A low was formed at $66,564 and the price is now consolidating losses. There was a minor increase above the $66,850 level. The price climbed above the 23.6% Fib retracement level of the downward move from the $69,427 swing high to the $66,564 low.

Bitcoin price is now trading below $67,500 and the 100 hourly Simple moving average. On the upside, the price could face resistance near the $67,100 level. There is also a short-term contracting triangle forming with support at $67,100 on the hourly chart of the BTC/USD pair.

The first key resistance is near the $68,000 level or the 50% Fib retracement level of the downward move from the $69,427 swing high to the $66,564 low. A clear move above the $68,000 resistance might send the price higher. The next key resistance could be $68,500.

A close above the $68,500 resistance might initiate more gains. In the stated case, the price could rise and test the $69,200 resistance level. Any more gains might send the price toward the $70,000 resistance level.

Another Decline In BTC?

If Bitcoin fails to rise above the $67,100 resistance zone, it could start another decline. Immediate support on the downside is near the $66,800 level.

The first major support is near the $66,500 level. The next support is now near the $66,200 zone. Any more losses might send the price toward the $65,500 support in the near term.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $66,800, followed by $66,500.

Major Resistance Levels – $67,100, and $68,000.

After six months, the Nigerian government has dropped all money laundering charges against Binance executive Tigran Gambaryan.

It comes barely a month after Binance founder and former CEO, Changpeng Zhao (CZ) was also released from prison.

Binance’s Tigran Gambaryan To Be Released

In a recent development, a lawyer representing the prosecuting agency disclosed the withdrawal of the charges at the Federal High Court in Abuja. The charges were withdrawn on Wednesday morning after what is believed to be “behind-the-scenes diplomatic lobbying” between the Nigerian and US governments.

“Wednesday’s hearing was a climax of the behind-the-scenes diplomatic lobbying that had been ongoing between Nigerian and the US government figures for months for the release of Mr. Gambaryan, who has been denied bail on two occasions because the judge considered him to be a flight risk,” local media reported.

Read more: Binance Review 2024: Is It the Right Crypto Exchange for You?

Gambaryan and his colleague Nadeem Anjarwalla were taken into custody on February 26. The two were arrested without formal charges after being lured to the country on supposed business dealings. They were held in Nigeria’s notorious Kuje Prison.