TREE, the native cryptocurrency of Treehouse, has collapsed by more than 50% today, soon after the token launch, which coincides with Binance’s announcement of a TREE airdrop. This clearly shows a rocky start for the native asset of the DeFi analytics platform.
Binance airdrop announcements usually boost prices, but TREE did the opposite, sparking heavy selling. Analysts are now trying to understand the cause of the crash.
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TREE Price Collapses Soon After Binance Airdrop
Treehouse’s native token, TREE, has a max supply of 1 billion tokens, with only 186.12 million (18.6%) currently in circulation. The rest will be released gradually through scheduled unlocks.
TREE officially began trading on July 29 and, apart from its Binance listing, is also available on major exchanges like Coinbase, OKX, and more.
Eligible participants can claim their airdrops starting this week, with the claim window extending through October 27, 2025.
Binance also launched a two-phase airdrop campaign, allowing select users to claim up to 100 TREE tokens as part of the rollout.
Bears Take the Upper Hand on TREE Fall
Amid this crypto airdrop saga, the TREE price has crashed over 50% and is currently trading at $0.53.
Despite Binance CEO CZ hinting at an upcoming altcoin season, TREE’s price still dropped sharply alongside a 200% increase in trading volumes to $350 million. Note that altcoins have faced a sharp correction recently despite Bitcoin and Ethereum gaining ground.
From a market structure standpoint, increasing trading volume alongside a declining price often indicates growing selling pressure. If this pattern continues, the volume surge may strengthen the ongoing downtrend, potentially exposing TREE to further downside risk.
On the 15-minute chart, the Bull Bear Power (BBP) indicator shows strong seller dominance, suggesting TREE could drop toward $0.30 if bearish momentum continues.
However, the Relative Strength Index (RSI) has bounced back from oversold levels, indicating a possible shift in sentiment. If buying pressure builds, TREE may attempt a short-term rebound toward $0.76, with a further upside target of $1.
Market Implications
The TREE token’s sharp decline despite Binance’s airdrop announcement suggests that token unlocks and selling pressure may outweigh typical exchange listing benefits. This development highlights the ongoing challenges facing new altcoin launches in the current market environment.
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