Scroll crypto turns bearish: Heavy pressure on psychological $1 level?

• Scroll crypto faced a swift rejection from the $1.4 zone.
• The psychological $1 level might see an influx of demand.

Scroll [SCR] is a Layer 2 scaling solution that leverages zKRollup technology to reduce transaction costs and increase throughput.

It aims to enhance the Ethereum [ETH] network scalability, and the token began trading in October.

Source: CoinMarketCap

The chart above showed that the rejection from $1.4 was quick. In the past 48 hours, the token has shed close to 30% in value.

Additionally, data from DefiLlama showed that the Total Value Locked (TVL) stood at $793 million at press time.

This value is just over $200 million lower than the $995 million TVL it recorded on the 16th of October.

This uptick in activity was driven by the airdrop farming ahead of the Scroll token airdrop snapshot on the 19th of October.

Strong downward momentum for Scroll crypto

Source: SCR/USDT on TradingView

The Money Flow Index was near the oversold territory in the 1-hour timeframe. It showed that there was heavy selling pressure in recent hours.

The price action took on a bearish bias within a matter of hours on the 21st of October.

The rejection from $1.4 saw prices plummet swiftly below the $1.28 and $1.19 support levels. Additionally, the bulls tried to climb back above the $1.19 level to convert it back into a support zone but failed.

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Since this latest rejection at $1.19, SCR is down by 17%. The market structure and trend were intensely bearish on the hourly timeframe.

The ADX and -DI (yellow and red respectively) were well above the 20 mark to highlight a strong bearish trend in progress. Combined with the selling pressure, it appeared likely that the $1 level would give way soon.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion