the spell token The price has been in a strong downtrend for the past few days and is currently sitting slightly above a key support level. It is trading at $0.0039, slightly above the year-to-date low of $0.0035. The coin is around 90% below its all-time high, bringing its total market capitalization to around $327 million.
Spell Token has become a relatively popular cryptocurrency in recent days. It is the native token of the Abracadabra network, which is a leading player in the decentralized finance (DeFi) industry. However, the trend for Abracadabra and SPELL has been weak recently. For one thing, the Abracadabra network’s total value locked (TVL) dropped to around $2.59 billion, which is significantly lower than its all-time high of over $6.3 billion.
There are several reasons why this trend has occurred. First, Abracadabra is not the only DeFi platform to have experienced a sharp drop in TVL. Over the past few months, the total TVL of all DeFi platforms has fallen by over $50 billion to the current $200 billion. Second, the weakness in the price of the Spell Token is in line with the performance of other DeFi tokens. Recently, most DeFi tokens like Uniswap and Curve Finance have all fallen.
Third, the performance is mainly due to the Federal Reserve, which has hinted that it will adopt a more hawkish tone in the coming days. The bank is expected to start raising interest rates later this month, and it is likely to implement up to 7 rate hikes. Finally, the price of SPELL declined due to rising tensions over Ukraine. These tensions have dragged down most financial assets like stocks.
Spell Token Price Prediction
The four-hour chart shows that SPELL price has been in a strong downtrend over the past few days. Along the way, the coin formed a descending channel pattern and moved slightly below the 25- and 50-day exponential moving averages (EMAs). The Relative Strength Index (RSI) edged above the oversold level.
Therefore, the price of the Spell Token is likely to continue falling as the bears target the next key support at $0.0030. This view will be invalidated if it exceeds $0.0042.