Spell Token Price Analysis: What is SPELL and is it a Good Buy?

Summary:
• The Spell Token price has bounced back in the past few days. SPELL has risen in the past four straight days

The Spell Token price has bounced back in the past few days. SPELL has risen in the past four straight days and is trading at $0.018. It is trading close to the highest level since November 21. Also, it has risen by more than 200% in the past few days.

What is the Spell token?

The Spell Token is the native token for the Abracadabra ecosystem. For starters, Abracadabra is a platform that allows users to produce digital money. Users can provide collateral in the form of stablecoins like yvUSDT, yvUSDC, and xSUSHI. 

With this collateral, you can borrow magic internet money (MIM) with a stablecoin. In this ecosystem, MIM is the core component that sustains the Abracadabra lending model. SPELL is hosted on Ethereum, the biggest smart contract platform in the world. Users can stake Spell

The Spell token price initially jumped by more than 231% between October and November. It then crashed by more than 83% and reached an all-time low of $0.006. It has rebounded this week as demand has risen. 

Spell Token price prediction

The four-hour chart shows that the SPELL price has risen to $0.018, which is substantially higher than the lowest level last week. On the four-hour chart, the coin has managed to move above the 25-day and 50-day moving averages. The two have formed a bullish crossover. It has also found some resistance along the 38.2% Fibonacci retracement level. 

Therefore, there is a likelihood that the coin will keep rising as bulls target the 50% retracement at $0.0225. A drop below the support at $0.015 will invalidate the bullish view.