Xai Token Plummets Over 10% Post-Airdrop and Binance Debut
Xai, a layer-3 gaming token, has witnessed a significant price drop of over 10%, a surprising turn of events in the cryptocurrency market. The decline followed closely on the heels of its airdrop and a major listing on the Binance exchange.
This sudden market reaction raises concerns and speculation among investors and market analysts. Consequently, XAI’s market capitalization and 24-hour trading volume dipped by 9.93% and 58.32% to $163,081,855 and $114,039,627, respectively.
XAI/USD 24-hour price chart(source: CoinStats)
Moreover, the Xai Foundation’s decision to conduct a major gaming token airdrop this year contributed to the volatility. They released 125 million XAI tokens, accounting for 5% of the total supply, to a select group of users. These included holders of specific Xai NFTs and participants operating gatekeeper nodes or validators. Before the airdrop, Xai enjoyed a market cap above $154 million, which sharply fell to around $70 million post-event.
Additionally, the inclusion of XAI on Binance should have been a positive milestone. The XAI/FUSD trading pair became available for spot trading, signaling a major step for Xai in gaining mainstream crypto market acceptance. However, the token’s value experienced a downturn instead of an anticipated upsurge.
Complicating matters further, the market also grappled with the emergence of a fake XAI token. This counterfeit version plunged by 100% following a significant token swap by the deployer address, as reported by PeckShieldAlert. The fake token, initially mistaken for the genuine XAI, created confusion and panic among investors, further driving down the value of the real XAI token.
XAI/USD Technical Analysis
The Relative Strength Index (RSI) rating of 39.28 on the XAI/USD price chart indicates that the negative trend is strengthening. This pattern suggests that market selling pressure is intensifying and that more price declines are likely.
If the RSI goes below 30, it indicates that the XAI/USD is becoming oversold. This trend could attract buyers looking for a bargain and temporarily reverse the bearish trend. However, if the RSI continues to decline, it may signal a continuation of the bearish momentum and potentially result in further price drops.
XAI/USD 3-hour price chart (source: TradingView)
In addition, the stochastic RSI rating of 10.54 suggests that the XAI/USD is currently in oversold territory. This trend further supports the possibility of a temporary reversal in the bearish trend, as buyers may see this as an opportunity to enter the market at a discounted price. This shift indicates that the selling pressure has been exhausted, potentially leading to a decrease in selling activity and an increase in buying activity.
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