The Spell Token price is holding steady even as other cryptocurrencies slump. SPELL, the native token for the Abracadabra network, is trading at $0.024, which is a few points below this week’s high of $0.027. This price is about 300% above the lowest level this month.
What is the Spell Token?
The Decentralized Finance (DeFi) industry is changing how the world interacts with money and gets services. The industry enables people to get financial services without going through intermediaries like banks and brokers.
Abracadabra is a relatively new and fast-growing DeFi platform. According to DeFi Llama, the ecosystem has a total value locked of more than $6.2 billion, making it the 11th biggest platform. Its performance is notable since the ecosystem had a TVL of less than $100 million in June.
It is slightly below Anchor and above PancakeSwap. Spell Token is the native token for the ecosystem. It is used for its governance and staking as well.
Abracadabra is a DeFi platform that is in the lending industry. It distinguishes itself from other DeFi platforms because of its stable coin that is known as Magic Internet Money ($MIM). Borrowers can deposit their collateral in the form of interest-bearing cryptocurrencies like yvUSDT and then get MIM, which you can swap with other coins.
The Spell Token is rising even as cryptocurrencies like Bitcoin, Ethereum, and Solana have slumped. Indeed, the total market capitalization of all cryptocurrencies has declined to more than $2.4 trillion.
This divergence is mostly because of the rising hopes that Abracadabra’s ecosystem will continue growing in the coming months. Also, investors are cheering the fact that its TVL has crossed the $6.2 billion milestones.
Spell Token price prediction
A closer look at the four-hour chart shows that the SPELL price has bounced back in the past few weeks. Along the way, the coin managed to move above the key resistance at $0.021, which was the highest level on December 7. This price was along the upper line of the cup and handle pattern. It has also formed a break and retest pattern, which is usually a bullish sign.
However, a closer look shows that the Spell Token price has formed a double-top pattern at $0.027. In technical analysis, this pattern is usually a bearish sign. Therefore, there is a likelihood that the coin’s price will bounce back lower in the near term.
