- Summary:
- SPELL token price has been ranging over the last week and investors are guessing how it will break out. We discuss its near-term prospects.
SPELL token price has been trading sideways over the past seven days, and the token has been struggling to break above $0.045. Prior to its current range, it has been on a downtrend, seeing it lose about 26.2% of its value in two weeks. Therefore, SPELL is likely to struggle to gain momentum to recover about 26.2% of the value that it has lost over the past 14 days. Notably, SPELL is down by about 13.5% over the last 30 days, meaning that it has sped up its losing streak in recent days.
Paying the price for Frog Nation Scandal?
SPELL is DeFi-centric, and the DeFi market has been performing relatively better than the crypto coin market. However, SPELL is struggling to break out either on the upper or lower side, making it vulnerable to losses as competing DeFi-centric coins such as Origin Protocol perform better. Notably, SPELL has struggled to find its footing since the Frog Nation scandal hit it in late January 2022.
Frog Nation consists of DeFi projects like Wonderland, Abracadabra, and Popsicle Finance. Except for three occasions, SPELL has remained below $0.0077 since January 31st. DeFi project Wonderland’s treasury manager, Michael Patryn, is believed to have been an ex-convict, causing a sell-off of Frog Nation tokens in late January.
Prior to the revelations, Wonderland was on course to merge with SPELL’s issuer Abracadabra. money. Many potential investors will likely prefer to keep off SPELL in the near term and adopt a “wait-and-see” attitude towards it. Therefore, barring any significant gains in Abracadabra fundamentals, SPELL’s price will likely stay within small margins of its current price in the near term.
SPELL token price prediction
The ADX is currently at 29 and is heading downwards. This signals that the current sideways action could stay longer. SPELL token price will find support at $0.0039, with the next barrier likely to be at $0.0043. At this point, the $0.0046 resistance will be a viable target. Otherwise, if the price slides down to the monthly support at $0.0033, the bullish view will be invalid. Also, at that point, a downward breakout will be on course.
