$TREE

Treehouse (TREE) dropped 7.9% in 24 hours due to volatility after the launch, token sales from the airdrop, and weak conditions in the altcoin market.

1. Airdrop beneficiaries sold the unlocked tokens after the end of the $750,000 rewards program from Binance.

2. High circulating supply (15.6%) at launch increased selling pressure.

3. Sentiment in altcoins fell while Bitcoin dominance rose to 60.9%.

Detailed Analysis

1. Main Catalyst: Selling Pressure from the Airdrop

• Binance distributed 12.5 million TREE tokens (1.25% of the total) through the HODLer airdrop program on July 29, followed by a $750,000 Booster rewards phase that ended on July 31 (Binance).

• 100% of the airdrop tokens were unlocked at launch, allowing beneficiaries to sell immediately for profit. Similar patterns were observed with RCADE (-30%) and other new listings.

2. Supporting Factors: Tokenomics and Market Dynamics

• 15.6% of the total 1 billion TREE entered circulation at launch, with 10% allocated for airdrops to the community. This diluted initial demand (Treehouse docs).

• The volume/market cap ratio of 157% indicates very high liquidity, typical of tokens with large retail investor participation and little institutional support.

3. Technical Context: Post-Launch Volatility

• TREE fell 41% in the first 24 hours after listing on July 29, dropping from $1 to $0.58. Despite a brief attempt at recovery, the token remains 54% down after 7 days.

• The Relative Strength Index (RSI) reached oversold levels, but weak buying momentum failed to sustain the recovery.

4. Market Dynamics: Weakness in Altcoins

• Bitcoin dominance rose to 60.9% (up 0.25% in 24h), indicating a rotation of capital towards less risky assets.

• The Altcoin Season Index is at 36/100, showing little interest in lower market cap projects like TREE.