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Scroll (SCR) drops 19% after market debut. Will it recover?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). 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. 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 $1.72.
Short
by paul_endeo
Scroll Governance Token ($SCR) Debut at $212 Million Market CapScroll, a prominent Layer-2 scaling network for Ethereum, recently launched its highly anticipated native governance token, $SCR. The token debuted with a market capitalization of $212 million, pricing at around $1.40 before facing a downward trend to its current value of $1.10, reflecting the challenges faced in its initial release. With a fully diluted valuation (FDV) of $1.1 billion, Scroll is positioning TSX:SCR as a key component of its governance and utility framework as the network progresses towards full decentralization. However, the token's journey has been far from smooth, plagued by negative sentiment and user concerns over token allocation. Despite this, TSX:SCR 's long-term potential, coupled with its essential role in Scroll’s ecosystem, makes it an intriguing asset for traders and investors alike. Overview 1. Market Cap & Circulating Supply The TSX:SCR token launched with a market cap of $212 million and a circulating supply of 190 million tokens. While the token initially started trading at $1.40, it saw a swift correction to $1.10 within the first few hours. The correction, while expected in volatile market conditions, was partly driven by criticism over the token allocation process. 2. Airdrop Concerns & Team Transparency: A significant factor that influenced early price movements was Scroll's decision to give Binance 5.5% of the total token supply for its Launchpool users. This allocation raised concerns among early adopters who felt the token distribution lacked fairness. Moreover, Scroll’s users voiced frustration over rumors that team members were eligible for airdrops, but these claims were swiftly refuted by core contributors. Scroll ( TSX:SCR ) took a strong stance against these allegations, emphasizing that no co-founders or team members would receive any portion of the airdrop, aiming to restore trust among the community. Despite these efforts, the negative sentiment lingered as the token price experienced a notable decline of 20%, marking a rough start for $SCR. 3. Trading Volume & Liquidity Despite its price slump, TSX:SCR saw impressive trading volume, with $189 million traded across all pairs on its first day. The token also accumulated over 500,000 transfers and more than 200,000 holders in just 24 hours, signifying strong market interest. Liquidity remains solid, with over $400,000 positioned within 2% of the spot price on Binance, indicating healthy participation and relatively low slippage for traders. Technical Analysis: From a technical perspective, TSX:SCR is currently experiencing a dip, down 12% from its initial trading price. The Relative Strength Index (RSI) sits at 43, which places the token in a neutral territory. This suggests that while there’s some downward pressure, the selling momentum is not overwhelming, and the market could soon stabilize. One notable pattern in the chart is the appearance of a gap-down formation, which often signals a short-term selling climax. This gap, if not filled quickly, could reverse and provide strong buying opportunities, especially as TSX:SCR approaches key support zones. The recent price action has created the possibility of a bullish engulfing pattern, hinting at a potential trend reversal. The $1.10 to $1.36 range presents critical pivot points, and any surge beyond $1.36 could propel TSX:SCR toward retesting its previous highs, especially as the token gains more market traction. In addition, the overall volume profile indicates substantial trading interest, with bullish investors likely stepping in once the selling pressure subsides. Historically, tokens like TSX:SCR tend to see increased demand as they integrate more utility features, and with Scroll’s plans to evolve TSX:SCR into a protocol utility token, the long-term outlook remains optimistic. What Lies Ahead for Scroll and TSX:SCR ? The future of TSX:SCR hinges on several key factors: 1. Decentralization & Governance: As Scroll becomes more decentralized, the demand for TSX:SCR as a governance token will likely increase. Its utility in voting on key proposals, network upgrades, and other governance-related activities will add more value over time. 2. Institutional Adoption: As the Scroll network matures, its Layer-2 scalability could attract institutional interest, especially as Ethereum continues to deal with congestion and high transaction fees. This could lead to higher demand for TSX:SCR as institutions seek governance influence within the ecosystem. 3. Technical Strength & Support: The $1.10 support level will be critical in the short term, and if Scroll can maintain or reclaim the $1.36 pivot, it could signal a trend reversal and trigger a rally towards its all-time highs (ATH). The bullish engulfing pattern suggests that buyers may soon regain control, especially if the volume spikes in the coming sessions. 4. Addressing Community Concerns: Lastly, Scroll’s transparency and responsiveness to community concerns will play a vital role in fostering long-term trust. By effectively managing token distribution and ensuring fairness, Scroll can rebuild investor confidence, which will ultimately be reflected in the TSX:SCR price action. Conclusion Despite the initial volatility and concerns surrounding its launch, TSX:SCR ’s long-term potential remains intact. The Scroll network’s focus on decentralization and its role in Layer-2 Ethereum scaling solutions could see TSX:SCR emerge as a valuable governance and utility token. While the token faces short-term selling pressure, its fundamental strength, combined with the technical outlook, suggests that the worst may soon be over. A bullish reversal looks likely as TSX:SCR approaches key support levels, and with continued development, Scroll and its native token are well-positioned for future growth. Investors with a long-term horizon should watch for the $1.36 pivot as a potential entry point, while keeping an eye on market sentiment and upcoming developments within the Scroll ecosystem.
Long
by DEXWireNews