Why Walrus Price Drop Today: Is Binance Alpha Airdrop Behind?

Walrus Price Drop After Binance Alpha Airdrop Triggers Sell Pressure

Walrus Price Drop more than 4% in the last 24 hours, lagging behind the average crypto market’s 1.11% after its Binance Alpha launch and airdrop announcement hit the headlines. 

Trading at $0.4042 at the day start but the Binance’s airdrop claims news triggered greater short-term sell pressure and currently set it around $0.379. 

With the number continuously seeing downside, the question is sure to be raised that if only airdrop can make a token this much weak or any other factors also contributing in the decline as the token experiencing a 7.52% weekly down. 

Binance Alpha Airdrop Fuels WAL Sell Pressure

Binance Wallet shared the Walrus (WAL) listing on Binance Alpha, with their incentive program. Eligible users can claim 150 WAL-tokens through Alpha Points on its Events Page. The airdrop started at 07:00 UTC and scheduled in two stages:

• Phase 1 (first 18 hours): At least 210 Alpha Points needed.

• Phase 2 (remaining 6 hours): Threshold was reduced to 195 points, going down by 15 each hour if rewards were still available.

While the event generated excitement, it also sparked rapid token distribution, causing many traders to sell immediately after claiming. This action found similar technical resistance, enhancing the Walrus price collapse.

Technical Rejection and Poor Altcoin Sentiment Exacerbate Decline

Soon after the claim event, began at 07:00 UTC, WAL price dropped around 3.8% and now 4.67%, lagging the general crypto market down by 1.11%. The three principal factors of the token’s price decline are: 

1. Airdrop Sell Pressure: Immediate selling from recipients created downward momentum.
   

2. Technical Rejection: WAL failed to break resistance at its 7-day SMA ($0.404) and Fibonacci 23.6% retracement ($0.433).
   

3. Altcoin Sentiment: A risk-off shift in the market saw the Altcoin Season Index fall to 44 from yesterday's 51 almost 13.8% in 24 hours.

Understanding Walrus: Storage Protocol With Strong Fundamentals

WAL’s fundamentals remain outstanding despite the short term volatility. Walrus is a decentralized storage protocol designed on Sui for storing and verifying large data chunks efficiently.

• It uses erasure coding to cut storage costs to 5× the blob size, compared to 100× in traditional blockchain storage.
  

• WAL-has a total and max supply of 5B, with 1.47B circulating, a market cap of $565.8M, and a 24h trading volume of $25.04M.
  

This strong technical foundation contrasts with the short-term volatility caused by the airdrop-event.

Expert View: A Classic Post-Airdrop Market Reaction

Walrus price drop is a reflection of normal post-airdrop trends seen across the crypto space, as early holders take immediate profits, causing short-term downward pressure. Combined with resistance levels and weak sentiments, WAL’s drop follows a common pattern that usually happens after major events.

But if the token sets up above support points and sentiment corrects, Walrus might level out and recover once speculative selling has passed.