TRUMP price has witnessed a notable decline in the past few weeks. The Trump-inspired meme coin is now trading at $3.31, reflecting a 27% decline over the past week.

With the election just one week and six days away, TRUMP is poised to revisit its yearly low of $1.70. This analysis explores the factors making that scenario increasingly likely.

MAGA Sees Spike in Selloffs

TRUMP’s price has declined by 22% in the past 24 hours. During the same period, its trading volume has totaled $12 million, rising by 122%. 

When an asset’s price drops while its trading volume skyrockets, it indicates strong selling pressure in the market. The combined interpretation of this trend suggests that many TRUMP traders are selling off their positions. This shows that holders are losing confidence in the asset as the election date approaches, prompting a rush to sell.

Read more: 7 Hot Meme Coins and Altcoins that are Trending in 2024

TRUMP’s negative Chaikin Money Flow (CMF) supports this bearish outlook. As of this writing, this indicator is in a downtrend, below the zero line at -0.04.

The CMF indicator measures money flow into and out of an asset. When its value is above zero,  it indicates that an asset is being accumulated, suggesting bullish sentiment, as buying pressure exceeds selling pressure.

Conversely, a CMF reading below zero suggests a bearish sentiment. It signals that selling pressure dominates the market, and downward momentum will likely continue.

Furthermore, TRUMP’s double-digit decline has pushed its price below the 20-day exponential moving average (EMA), which tracks its average price over the past 20 trading days. 

This is a bearish signal because it suggests that Trump’s short-term trend is weakening. It indicates that the meme coin sellers are gaining control and have pushed its price below the moving average of the past 20 days.

TRUMP Price Prediction: Meme Coin May Revisit Yearly Low

If the current trend continues, TRUMP’s price is at risk of revisiting its yearly low of $1.70, marking a 48% decline from its current value. However, if market sentiment shifts from bearish to bullish and new demand for the meme coin surges, TRUMP’s price could rebound and begin an uptrend.

Read more: Crypto Regulation: What Are the Benefits and Drawbacks?

In this scenario, it would aim to break through resistance at $5.49. If successful, TRUMP could potentially rally further, targeting $11.64.

The crypto market encountered a setback yesterday as Bitcoin (BTC) fell short in its attempt to reach $70,000. Despite this, several other cryptos managed to maintain their positions on the list of altcoins trending today.

Among these, some coins showcased solid performance, while others trended for different reasons despite not delivering strong results. As of today, October 22, the top three trending altcoins on CoinGecko are Scroll (SCR), Solidus Ai Tech (AITECH), and KOALA AI (KOKO).

Scroll tops the list of altcoins trending today due to its native token, SCR. On Monday, October 21, Scroll, a leading zero knowledge rollup built on Ethereum, announced the launch of SCR. According to its official statement, the launch also comes with an airdrop for contributors and its community.

“We’ve allocated 55,000,000 SCR tokens (5.5% of the total supply) to participants who have actively contributed to the Scroll ecosystem through their on-chain activities in our Sessions Program. Out of this allocation, 40,000,000 SCR (4% of the total supply) are proportionally allocated among onchain participants who have accumulated 200 or more Marks as of October 19, 2024,” the project wrote.

One reason Scroll is trending is the controversy surrounding its airdrop allocation. On X (formerly Twitter), numerous early adopters are expressing frustration over transacting thousands of dollars on the chain only to receive SCR tokens valued significantly less.

For example, a pseudonymous user with the handle Picolas Cage noted that this allocation means that the project has lost a six-figure DeFi user.

Read more: 10 Best Crypto Exchange Reviews for October 2024

Meanwhile, as seen above, SCR launched at approximately $1.70. However, its value has dropped in the last 24 hours and is currently trading at $1.24. In addition, it might be too early to predict SCR’s next price movement, as it seems to still be in price discovery mode.

Solidus Ai Tech (AITECH)

This is the third time AITECH is on BeInCrypto’s trending altcoins list. This time, the price did not increase as it has seen a modest 3% decline in 24 hours. However, it remains on this list due to the broader market interest in the project

On the daily chart, the Relative Strength Index (RSI) has dropped below the 50.00 neutral region. This suggests that the momentum around the token is bearish, and the recent downturn can accelerate.

If that remains the same, then SCR’s price might retrace to$0.080 from $0.094, where it currently stands. However, if buying pressure increases, the prediction might invalidated, and the trending altcoin’s value might jump to $0.12.

KOALA AI (KOKO)

KOALA AI is another altcoin that has previously appeared on this list. Like the previous time, KOKO is trending because of its massive price increase. 

Over the last 24 hours, KOKO’s price has increased by 125% and currently sits at $0.0000067. Based on the daily chart, the Bollinger Bands (BB) has expanded, indicating a high level of volatility around the cryptocurrency.

However, the upper band of BB has touched KOKO’s price, indicating that it is overbought and a decline looms. Assuming the lower band tapped the price, it would have been termed oversold. 

Read more: Which Are the Best Altcoins To Invest in October 2024?

Considering this current condition, the altcoin’s value might drop by 20% to $0.0000055. On the other hand, if bulls continue to buy the token, it might sustain the uptrend and could rally to $0.0000084.

Ethereum Layer-2 (L2) network Scroll has experienced a significant drop in its total value locked (TVL). It shed $170 million since its peak on October 16, 2024.

The rise and fall of Scroll’s TVL is emblematic of a broader trend in the crypto space. Short-term incentives such as airdrops can drive rapid growth in TVL but may not foster lasting user engagement.

Scroll’s total value locked (TVL) surged ahead of its highly anticipated snapshot on October 19. The snapshot was part of the protocol’s strategy to distribute its native SCR tokens through an airdrop. As BeInCrypto reported, the announcement on October 9 triggered a rush of activity as airdrop farmers scrambled to boost their holdings in hopes of qualifying for the token rewards.

DefiLlama data shows that between October 9 and October 16, Scroll’s TVL jumped by $157.70 million. It moved from $838.05 million to $995.75, signifying a surge of almost 20% in a week. However, the spike in Scroll’s TVL was short-lived. It has been dropping since the days leading up to the snapshot, recording $824.82 million as of writing.

Read more: What are Crypto Airdrops?

TVL refers to the total value of assets locked in a decentralized finance (DeFi) protocol. A surge in TVL usually indicates an increase in the amount of funds deposited and utilized within DeFi platforms. On the other hand, TVL drops indicate a decrease in the amount of assets locked in DeFi protocols.

TVL drops generally point to various reasons like market volatility, changes in user behavior, or events affecting the DeFi space. For Scroll, the rapid drawdown highlights a common issue with airdrop farming. While these events can create short-term liquidity surges, they often do not lead to long-term user engagement or value retention.

Even as the wait for the Scroll airdrop ends, some participants remain dissatisfied. Specifically, some users expressed concerns about insiders unfairly accumulating large amounts of marks.

“Scroll team is so greedy! After allocating 23% to themselves, they also chose to Sybil the airdrop by allocating team addresses 1m+ marks each,” said Anon Vee, a crypto investor and trader on X.

The quick influx of liquidity is typical of airdrop farming, where short-term participants eager to qualify for the airdrop inject capital into the protocol. By temporarily boosting their holdings on the platform, these participants hoped to secure a share of Scroll’s SCR tokens ahead of the airdrop.

Implications of Airdrops For Project Liquidity

The Scroll team appears to have used the airdrop snapshot strategy to attract new users. They leveraged the excitement surrounding such events, as airdrops offer participants the potential to earn free tokens. While some view this as an opportunity to hold assets at the right time, others participate purely for the token distribution without long-term interest in the project.

One downside to this strategy is the dilution of rewards for loyal users. Airdrop farmers, who only add liquidity for a short period, can claim a large portion of the token distribution. This can frustrate long-term supporters who feel their contributions are undervalued.

This issue is not unique to Scroll. Airdrop farming has become common across the crypto space, with projects like Mode Network, Manta, and ZKSync experiencing similar spikes in total value locked before a snapshot, only for the numbers to drop after the farming period ends. This volatility affects project stability and can erode trust among users.

Read more: Best Upcoming Airdrops in 2024

As the trend grows, projects must find ways to design incentive structures that reward long-term commitment without being vulnerable to short-term speculators. The challenge for Scroll and others will be retaining users after the airdrop event ends.