Many DeFi tokens have risen sharply as the overall cryptocurrency industry has performed well in recent days. The price of the Spell Token also retreated, although it remains close to its all-time low. As of Tuesday morning, the coin was trading at $0.0045, slightly above its year-to-date low of $0.0032.
Abracadabra is in trouble.
The spell’s price has fallen as investors worry about the performance of the Abracadabra ecosystem. The amount of money locked up in the network has seen a strong downward trend over the past few months. It went from a record high of over $6.19 billion to $2.5 billion currently. Notably, this drop came as other popular DeFi apps are seeing strong growth.
This is a sign that activity in the network is not going well. Notably, TVL has declined as other DeFi platforms like Uniswap, Aave, and Anchor Protocol see a rebound in activity. Another reason why the price of the Spell Token has struggled is the recent resignation of DeFi developers like Andre Cronje. Cronje has also been involved in other DeFi platforms like Wonderland and Popsicle.
Another sign that Abracadabra is in trouble is the performance of its Magic Internet Money (MIM), which is its stablecoin. Its market capitalization peaked at more than $4.6 billion in February and fell to around $2.76 billion. It’s also worth noting that the SPELL prize issues began in January when it was revealed that OxSifu was a senior player in Wonderland. OxSifu was part of the leadership of the Canadian exchange that disappeared after the death of the founder.
In a statement, the developers said at the time: “While Abracadabra is part of Frog Nation and part of the Abracadabra team works on Popsicle Finance and Wonderland, Abracadabra is an independent protocol whose fate is decided. by SPELL owners only.”
SPELL Token Price Prediction
The SPELL token has gone through a series of unfortunate events that have helped drive its price down significantly. However, it has found a strong support level and its price is trying to pull back. As measured by the Average True Range (ATR), its volatility has also declined. The moving average has also flattened out as volume is above average.
Therefore, a countercurrent grip can be made considering the piece has a high level of support. It is likely that a breakout will occur in the short term.