Many DeFi tokens have risen sharply as the overall cryptocurrency industry has performed well in the past few days. The Spell Token Price has also crawled back, although it remains close to its all-time low. On Tuesday morning, the coin was trading at $0.0045, slightly above its year-to-date low of $0.0032.
Abracadabra is in trouble.
The Spell price has declined as investors worry about the performance of the Abracadabra ecosystem. The amount of money locked in the network has been in a strong downward trend in the past few months. It has moved from an all-time high of over $6.19 billion to the current $2.5 billion. Notably, this drop has happened as other popular DeFi apps see strong growth.
This is a sign that activity in the network is not doing well. Notably, the TVL has declined as other DeFi platforms like Uniswap, Aave, and Anchor Protocol see a rebound in activity. Another reason why the Spell Token price has struggled is the recent resignation of DeFi developers like Andre Cronje. Cronje was also involved in other DeFi platforms like Wonderland and Popsicle.
Another sign that Abracadabra is in trouble is the performance of its Magic Internet Money (MIM), which is its stablecoin. Its market cap peaked at over $4.6 billion in February and has dropped to about $2.76 billion. It is also worth noting that the SPELL price trouble started in January when it was revealed that OxSifu was a senior player in Wonderland. OxSifu was part of the leadership of the Canadian exchange that disappeared after the founder died.
In a statement then, the developers said: “While Abracadabra is a part of the Frog Nation and while some of the Abracadabra teamwork on Popsicle Finance and Wonderland, Abracadabra is an independent protocol whose fate is decided solely by SPELL holders.”
SPELL Token price prediction
The SPELL Token has had a series of unfortunate events that have helped drag its price substantially lower. However, it has found a strong support level, and its price is attempting to crawl back. As measured by the Average True Range (ATR), its volatility has also declined. The moving average has also flattened while volume is above average.
Therefore, a contrarian take can be made considering that the coin has a strong support level. There is a likelihood that a breakout will happen in the near term.
