★WHY $WCT DROPPING ___
WalletConnect Token’s 43.7% price drop in 24 hours reflects profit-taking after a recent airdrop, cooling altcoin momentum, and technical overextension.
Airdrop sell-off triggered profit-taking after 5M WCT distribution to Solana users.
Market-wide altcoin weakness as Bitcoin dominance holds at 63.4% (Altcoin Season Index: 20/100).
Technical correction after overbought RSI (77.12) signaled exhaustion.
Deep Dive
1. Primary catalyst
The post-airdrop sell-off (5M WCT distributed to Solana users on May 23-29) drove immediate profit-taking. Historical patterns show token claims often lead to short-term sell pressure, especially after WCT’s 276.8% monthly rally (WalletConnect Foundation). With 186.2M tokens circulating, the airdrop added ~2.7% to supply, amplifying dilution fears.
2. Technical context
WCT’s overbought RSI (7-day: 77.12) preceded the drop, signaling exhaustion after its May 27-29 surge to $1.15. The price broke below the 23.6% Fibonacci retracement level ($1.12), triggering stop-losses. Trading volume spiked 30.3% to $1.78B, confirming bearish momentum.
3. Market dynamics
Bitcoin’s dominance rose to 63.42% (from 62.76% yesterday) as $545M flowed out of crypto ETFs, favoring blue-chip assets. The Altcoin Season Index held at 20/100, reflecting weak rotation to smaller caps. WCT’s high correlation with Solana (SOL -1.1% in 24h) exacerbated losses amid sector-wide risk-off moves.
Conclusion
The drop combines token-specific profit-taking and macro headwinds for altcoins. Watch for stabilization near the 38.2% Fib level ($0.735)
