TREE’s steep fall post-launch raises questions | Credit: Veronica Cestari
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Key Takeaways
TREE token crashed 46% within 24 hours of its launch, despite trading on major exchanges.
Airdrop expectations backfired, with high sell pressure driven by a trading volume surge.
If buyers regain control, TREE could bounce to $0.76, but failure could lead to a correction.
TREE, Treehouse’s native token, has tumbled 46% in just 24 hours, marking a rough debut for the newly launched token.
The steep drop came right after its official launch and surprisingly coincided with Binance announcing a TREE airdrop, a move that typically sparks bullish momentum.
However, in Treehouse’s case, the reaction was anything but typical. Here’s what’s behind the sudden sell-off and what could be next for TREE’s price.
Binance Airdrop Backfires as TREE Tanks
For context, Treehouse has a maximum supply of 1 billion tokens.
However, as of now, just 186.12 million are in circulation, representing 18.6% of its total supply. The rest will enter the market gradually through a scheduled token unlock program.
While TREE officially opened for trading on July 29, the project disclosed that eligible participants could claim their airdrops between yesterday and Oct. 27, 2025.
The project also revealed that the token was open for trading on several exchanges, including Coinbase, OKX, Binance, and several others.
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Binance announced that some users could claim up to 100 TREE tokens through an airdrop program. The crypto exchange, however, noted that the airdrop would be in two phases.
“Phase 1 (first 18 hours): Users with at least 233 Binance Alpha Points can claim the airdrop. Phase 2 (last 6 hours): Users with at least 200 Binance Alpha Points can participate in the airdrop on a first-come, first-served basis. If the rewards are not fully distributed, the score threshold will automatically decrease by 15 points every hour,” It stated on X.
Bearish Divergence Emerges
As noted earlier, TREE’s price has slipped to $0.57 at press time — down 46% from its launch high. But as the price dropped, trading volume told a different story.
Per Santiment data, TREE’s 24-hour trading volume has surged to $374.93 million. From a market structure perspective, rising volume and falling price typically signal mounting sell pressure.
If this trend persists, the volume spike could reinforce the current downtrend — putting TREE’s price at risk of even deeper losses.
From a technical standpoint, calling TREE’s next move might seem too early. The token appears to be in price discovery mode, making short-term predictions highly speculative for now.
However, on the 15-minute chart, the Bull Bear Power (BBP) indicator signals clear seller dominance, putting TREE’s price at risk of sliding as low as $0.30 if bearish momentum holds.
However, the Relative Strength Index (RSI) tells a slightly different story. The RSI has rebounded from oversold territory, hinting at a potential recovery — if the DeFi token buyers step in with conviction.
Should buying pressure pick up, TREE could stage a short-term rally toward $0.76, with a stretch target as high as $1.
In the meantime, the Treehouse team says it is focused on expanding assets to new base chains and layer-2 networks.
In the exclusive press release sent to CCN, the project noted that the capital it raised and its $400 million valuation have more to do with it.
“Looking ahead, Treehouse is focused next on expanding tAssets to new base chains and layer‑2 networks, while introducing derivative primitives such as Forward Rate Agreements (FRAs), supporting both institutional and DeFi-native use cases at scale,” It disclosed.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
