The Spell Token price is hovering near its all-time low as the relentless sell-off pauses. SPELL, the native token, is trading at $0.004, which is close to its record low of $0.0034. It has fallen by more than 83% from its all-time high, bringing its total valuation to about $393 million, making it the 174th biggest cryptocurrency in the world.
Spell Token is the native currency for the Abracadabra ecosystem. For starters, Abracadabra is a large decentralized finance (DeFi) platform that enables people to borrow the Magic Internet Money (MIM). MIM is one of the biggest stablecoins in the world that has a total market cap of over more than $2.7 billion.
The concept of Abracadabra is relatively easy to understand. Using its network, one can collateral in form of a yield-earning stablecoin. In exchange, you will receive MIM, which is a stablecoin backed by the US dollar. You can then cash out these funds from any exchange. To get your stablecoins back, you need to pay back the loan with some interest. According to DeFi Llama, Abracadabra has a total value locked of more than $2.7 billion. At its peak, it has a TVL of over $6 billion.
The daily chart reveals that the SPELL price has been in a strong bearish trend in the past few months. It has dropped by more than 80% from its ATH. As a result, it is oscillating around the short and long-term moving averages. It is also slightly above the key support level at $0.0035. A closer look shows that it has formed a descending triangle pattern.
Therefore, like I wrote last week, the path of the least resistance for the Spell Token price is lower, with the next key support being at $0.025. This view will be invalidated once the coin moves above the key resistance at $0.06.
This post was last modified on %s = human-readable time difference 17:15