Deep Dive
1. Technical Weakness (Bearish Impact)
Overview: SCR trades at $0.0714, below its 7-day SMA ($0.0735) and 30-day SMA ($0.0814). The RSI-14 at 37.63 suggests oversold conditions but lacks bullish reversal signals.
What this means: Persistent failure to reclaim the $0.0735 support-turned-resistance level reinforces bearish sentiment. The MACD histogram’s slight positive divergence (+0.00168) hints at short-term stabilization, but low volume (-6.89% 24h) limits upside potential.
What to look out for: A sustained break above $0.0735 could signal relief, while a drop below $0.0663 (recent swing low) may trigger accelerated selling.
2. Governance Risks (Bearish Impact)
Overview: Scroll DAO paused governance operations in September 2025 after leadership resignations, with no clear roadmap for decentralization (CoinDesk). Proposals like treasury management remain in limbo.
What this means: Centralization fears and stalled community initiatives reduce long-term holder confidence. SCR’s 75% drop from its December 2024 peak reflects eroded trust in the project’s governance maturity.
Key metric: Progress (or lack thereof) in Scroll’s governance redesign, expected to clarify the DAO’s role in 2026.
3. Ecosystem Struggles (Bearish Impact)
Overview: Scroll’s on-chain revenue turned negative in 2025, with weekly fees as low as -$842 (BringMeCoins). By comparison, Arbitrum processed 734M Q4 transactions.
What this means: Minimal fee revenue undermines SCR’s value accrual mechanics, especially as competitors like Base and Optimism gain traction. The Fusaka upgrade’s focus on Ethereum L1 scaling (Dec 2025) also diverted attention from Scroll’s L2 growth.
Conclusion
Scroll’s price reflects a trifecta of technical weakness, governance paralysis, and poor ecosystem traction. While oversold conditions might invite short-term bids, the lack of bullish catalysts and fading developer activity suggest continued underperformance.
Key watch: Can Scroll’s partnership with MakinaFi (institutional DeFi vaults) drive meaningful TVL growth in January 2026?