The volume of ME, a token issued by Magic Eden, a leading NFT marketplace, has dropped significantly. This glitch may be due to deterioration in interaction with the token after it was airdropped a few days ago.
However, trading volume is not the only part of the Magic Eden ecosystem affected. This on-chain analysis shows what else and how the price may change in the coming days.
Magic Eden sees declining interest in two main areas
Data from Santiment shows that Magic Eden’s volume on Wednesday, December 11th was nearly $5.50 billion. As of this writing, the same figure has dropped to $1.58 billion, indicating that it is down about $4 billion.
Trading volume represents the total number of buying and selling transactions of a particular cryptocurrency asset over a specified period of time, usually measured daily. When volume increases, it means there is intense interaction with the cryptocurrency.
On the other hand, a decrease in volume indicates a decrease in buying and selling, making it difficult for the price to rise. Interestingly, this volume decline coincides with a 54% decline in ME prices since its launch on Tuesday. If volume continues to fall, the altcoin’s value may not quickly recover from $5.15.
Just like token trading volume, overall NFT trading volume has also fallen. NFT trading volume represents the total value of transactions, measured in US dollars, using non-fungible tokens in a specific market during a specified measurement period.
According to the chain data, as of December 4, the volume exceeded $3 million. As of this writing, this value has dropped to $154,000, indicating that the number of NFTs bought and sold on the Magic Eden marketplace is no longer at the same high level as before. was last week.
If the platform continues to experience this decline, it could also impact the demand for the ME token, which is also a market utility token.
ME Price Prediction: Will Lose $5 Support Soon
At first glance, the hourly chart of ME/USD shows that the altcoin is trading in a downward channel. A downward channel characterized by lower highs and lower lows indicates a bearish trend in the market. This model assumes that sellers have an advantage by consistently lowering the price.
Considering that this is happening against the background of a decrease in the volume of the Magic Eden token, the price may go even lower. If this continues, the ME price could drop to $4.93 in the short term.
On the other hand, if the bulls defend the price at the $5.13 support level, this forecast may not come true. In this case, the cost of the cryptocurrency could rise to $7.19.
