Scroll [SCR] represents a Layer 2 scaling solution that utilizes zKRollup technology to lower transaction expenses and boost transaction volume.
Its primary objective is to improve the scalability of the Ethereum [ETH] network, with trading of the token commencing in October.
The diagram displayed indicates a rapid rejection at the $1.4 mark. Over the last 48 hours, the token has experienced nearly a 30% drop in value.
Furthermore, data from DefiLlama indicates that the Total Value Locked (TVL) has currently reached $793 million.
This figure is approximately $200 million lower than the TVL figure of $995 million documented on October 16.
This surge in activity was primarily fueled by airdrop farming leading up to the Scroll token airdrop snapshot on October 19.
Intense Negative Momentum for Scroll Crypto
The Money Flow Index hovered close to the oversold region within the 1-hour timeframe, signaling significant selling pressure in recent periods.
The pricing trends quickly turned bearish on October 21, with values dropping swiftly below the $1.28 and $1.19 support levels following the rejection at $1.4.
Despite efforts by the bulls to reclaim the $1.19 level as a support zone, these attempts were unsuccessful.
Since the rejection at $1.19, SCR has experienced a 17% decline. Market conditions and trends were heavily bearish in the hourly timeframe.
The ADX and -DI (yellow and red respectively) were well above the 20 threshold, indicating a prevailing bearish trend. The combination of selling pressure suggested that the $1 threshold could soon be breached.
Disclaimer: The content presented should not be considered as financial, investment, trading, or any form of advice but rather reflects solely the writer’s personal viewpoint.