This Thursday, the 0.98% drop in the SPELL/USDT price has reignited bearish Spell token price predictions. This move comes as several altcoins lost the early gains of the day and retreated. It also erases hopes that the larger-than-expected rate hike and its impact on weakening the dollar initially would be sustained. As it is, the US Dollar is bouncing back, and so is its correlated asset, Tether.
The Spell token has been on a continuous path to the south since it was launched in 2021. The latest collapse occurred after the completion of the descending triangle. This drop opened the door for a measured move completed at the current support level. Despite the intraday gains of Wednesday following the Fed’s 75bps rate hike. However, the price action is on its way back to the south after it failed to clear the 0.00093338 resistance.
The SPELL/USDT pair looks set to post the third day of losses, which could keep pessimistic Spell token price predictions going for some time to come.
The price action continues to trade in a range formed by the 0.00093338 resistance acting as the ceiling and the 0.00077904 price support acting as the floor. A breakdown of the 0.00077904 floor sends the price action towards the next target formed by the 12 June 2022 low at 0.00066118. This is also the 100% Fibonacci extension price level. Below this area, 0.00058866 (127.2% Fibonacci extension level) and 0.00055081 (141.4% Fibonacci extension) form additional barriers to the south.
On the flip side, the 0.00093338 resistance must be uncapped by the bulls before 0.00104283 forms the next upside target (11 June high). Above this level, additional northbound targets are seen at 0.00111579 (11 June and 13 June highs), and 0.00121401 (10 June 2022 high).
This post was last modified on Jun 16, 2022, 13:50 BST 13:50