The Spell Token price has rebounded in the past few weeks. SPELL, the native token for the Abracadabra network, is trading at $0.024, which is the highest level it has been since November 15th. It has also risen by more than 290% from the lowest level this month.
SPELL slowly climbs
The Spell Token has slowly scaled the cryptocurrency ladder in the past few months. Today, the coin has a market capitalization of more than $1.9 billion, making it the 78th biggest cryptocurrency in the world. This is a remarkable performance considering that the token was little known a few months ago.
For starters, the Spell Token is the native token for the Abracadabra network. This is one of the fastest-growing decentralized finance (DeFi) platforms in the world. According to DeFi Llama, the platform has a total value locked (TVL) of more than $5.8 billion. This makes it the 11th biggest platform in the industry. It sits between Anchor and Yearn Finance.
Abracadabra is a DeFi platform that is in the lending and earning sub-sectors. The network, which is built on Ethereum, Avalanche, and Polygon, enables people to deposit finds and then make interest from them. This interest is generated through lending.
For example, assume that you need some cash but are not interested in selling your cryptocurrency. In this case, you can deposit your cryptocurrency in Abracadabra’s network. This cryptocurrency will act as collateral. Then you can borrow money and receive it in the form of a stablecoin. Afterwards, you can repay back the funds and then receive your original coins.
The Spell Token price has jumped sharply in the past few weeks as investors cheer the growing popularity of its network. For one, its TVL has jumped by more than 20% in the past seven days.
Spell Token price forecast
The four-hour chart shows that the SPELL price has been in a strong bullish trend in the past few weeks. Along the way, the coin formed a cup and handle pattern. The cup section has already completed and is shown in yellow.
The coin has also moved above the key resistance at $0.021, which is the upper side of the cup. The price is also above the 25-day and 50-day moving averages.
Therefore, I suspect that the Abracadabra price will keep rising in the near term. However, for this to happen, the coin will need to have a break and retest pattern where it falls back to the now-support at $0.021.
