Deep Dive
1. Technical Weakness (Bearish Impact)
Overview: SCR trades at $0.088, below its 7-day SMA ($0.0898) and 30-day SMA ($0.1123). While the RSI (33–38) suggests oversold conditions, the MACD histogram (+0.00186) shows weak bullish momentum failing to reverse the downtrend.
What this means: Traders see limited upside potential below key resistance levels ($0.104 Fibonacci level). The 30-day price drop of 43% has created a “sell the bounce” mentality, amplified by low liquidity (turnover ratio: 0.206).
2. Governance Turmoil (Bearish Impact)
Overview: Scroll’s DAO paused governance in September 2025 after leadership resignations, leaving proposals like treasury management in limbo (Coindesk).
What this means: The shift toward centralization contradicts Scroll’s decentralization narrative, eroding trust. Holders face uncertainty about token utility (e.g., governance rights) and future protocol direction.
What to watch: Progress on governance redesign – delays could trigger further sell-offs.
3. Network Revenue Struggles (Bearish Impact)
Overview: Scroll generated negative weekly revenue as recently as November 2025 (Bring Me Coins), lagging behind rivals like Arbitrum ($2.2M weekly revenue).
What this means: Low fees signal weak user demand and raise questions about long-term viability. Investors may reallocate to L2s with clearer revenue paths (e.g., Base, OP Stack chains).
Conclusion
Scroll’s price reflects a mix of bearish technicals, governance doubts, and poor fundamentals. While oversold conditions could trigger a short-term bounce, sustained recovery requires resolving governance paralysis and demonstrating network growth.
Key watch: Can Scroll’s upcoming mainnet expansion (per MEXC) catalyze user adoption and reverse revenue trends?