Magic Eden Token Volume 4 Billion Dollar Crashes: ME Price Impact
ME, a token launched by Magic Eden, a leading NFT marketplace, has seen its volume plummet. This crash may be related to the decreased interaction with the token since it went live a few days ago.
However, transaction volume is not the only part of the Magic Eden ecosystem that has been affected. This on-chain analysis shows what else and how the price will come in the coming days.
Magic Eden sees interest in two main areas
According to data from Santiment, Magic Eden's market capitalization was $5.50 billion on Wednesday, December 11th. As of this writing, that same measure has dropped to $1.58 billion, a decrease of about $4 billion.
Trading volume represents the total number of buy and sell transactions for a particular cryptocurrency asset within a given time frame, typically measured daily. As the amount increases, it means that there is more interaction with the cryptocurrency.
On the other hand, a decrease in volume indicates a decrease in buying and selling, which makes price increases challenging. Interestingly, this decline in volume coincides with ME's 54% price decline since Tuesday's launch. If the rate continues to decline, the altcoin price may not see a quick rebound above $5.15.
Like the token trading volume, the total NFT trading volume is also increased. NFT trading volume represents the total value of transactions, measured in US dollars, involving non-perishable tokens in a specific market place during a specific measurement period.
According to chain data, the amount was more than 3 million dollars on December 4. As of this writing, this price has dropped to $154,000, indicating that the number of NFTs bought and sold on the Magic Eden marketplace is no longer at a high level. It was last week.
If the platform continues this decline, it could affect demand for the ME token, which is a utility token in the marketplace.
ME Price Prediction: Will lose the $5 support soon.
At first glance, the 1-hour ME/USD chart shows that the altcoin is trading in a descending channel. A descending channel characterized by low highs and low lows indicates a bearish market trend. This pattern suggests that sellers are dominant, continuously driving the price down.
Considering that this is a decreasing amount of Magic Eden Tokens, the price may decrease. If this trend continues, the price of ME may drop to $4.93 in a short period of time.
On the downside, if bulls keep the price at the $5.13 support level, this may not be a forecast. In this case, the price of the cryptocurrency may rise to $7.19.
Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be construed as financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions. Please note that our terms and conditions, privacy policy and disclaimer have been updated.
