A project known as Scroll [SCR] has made significant strides as a Layer 2 scaling solution by utilizing zKRollup technology to decrease transaction expenses and increase capacity.
Its primary goal is to improve the scalability of the Ethereum [ETH] network, with the token commencing trading during October.
Intense Bearish Momentum for Scroll Cryptocurrency
An examination of recent trends reveals a rapid rejection from the $1.4 level, resulting in a nearly 30% decline in the token’s value within the past 48 hours.
Furthermore, data from DefiLlama indicates that the Total Value Locked (TVL) currently rests at $793 million, a decrease of over $200 million from the $995 million TVL recorded on October 16th.
This surge in activity stemmed from airdrop farming activities leading up to the Scroll token airdrop snapshot scheduled for October 19th.
Analysis of the Money Flow Index on the 1-hour timeframe indicates proximity to oversold conditions, signaling substantial selling pressure in recent periods.
On October 21st, a shift towards bearish sentiment occurred within a short timeframe, with prices swiftly plunging below the $1.28 and $1.19 support levels.
Although attempts were made by bulls to reclaim the $1.19 level as a supportive zone, these efforts were unsuccessful.
Following the recent rejection at $1.19, SCR has experienced a 17% decline, with the market outlook demonstrating a pronounced bearish trend on the hourly chart.
Indicators such as the ADX and -DI (yellow and red, respectively) currently stand well above the 20 mark, pointing to a robust ongoing bearish movement. Given this scenario, the likelihood of the $1 level being breached in the near future seems plausible.
Disclaimer: The information provided is purely the author’s perspective and does not constitute financial, investment, trading, or any other form of advice