After posting double-digit gains fueled by a Binance listing, massive airdrop, and multi-exchange debut, RESOLV,the governance and rewards token of the Resolv stablecoin protocol, has plunged over 20% today.

RESOLV (RESOLV) dropped sharply on Thursday, falling from a daily high of $0.4108 to $0.29 at the time of writing. The steep correction has caught the attention of traders and analysts, sparking renewed scrutiny of the token’s launch dynamics.

The decline comes just two days after RESOLV’s listing on Binance, KuCoin, and Bitget on June 10, positioning the token as a high-profile test case for how aggressive incentive models and multi-platform debuts perform under real market pressure. The pullback raises broader concerns around user retention post-airdrop, sustainable tokenomics, and the limits of early exchange exposure.

Why RESOLVE price is down

One clear driver of RESOLV’s drop is profit-taking following its launch rally. After surging from $0.091 to $0.41 during a hype-fueled breakout, early buyers, especially airdrop recipients, have started cashing out, creating heavy sell pressure.

This pattern mirrors previous airdrop-driven market action. Tokens like Arbitrum (ARB) and Starknet (STRK) experienced similar volatility, with ARB falling nearly 90% from its IOU highs as smart money wallets dumped large amounts shortly after launch. STRK followed suit, plunging over 50% within its first 24 hours as whales and airdrop farmers rushed to exit.

In addition to the profit-taking, the RESOLV team is facing allegations of unfair airdrop allocation. On January 12, a critic on X accused the project of distributing 11.7% of RESOLV’s supply—above the promised 10% allocation.

According to the post, 6% of the token’s total supply was distributed to just 230 addresses, including at least one wallet that did not appear in the original airdrop contract. This controversy has likely damaged community trust and may have accelerated panic selling.

From a technical perspective, RESOLV’s Relative Strength Index is now falling back after reaching near-overbought territory of 65-70, suggesting a loss of bullish momentum. With trading volume also shrinking, short-term traders appear to be exiting their positions, leaving the token vulnerable to a consolidation phase.

If RESOLV holds above $0.35 and the rally resumes, the next upside target is $0.40, then possibly $0.45. Should it break below $0.30, deeper correction toward $0.25 or even retests of $0.19 may follow.