The Spell token price has been in a consolidation phase in the past few months as activity in Abracadabra plummets. The token is trading at $0.00096, where it has been recently. This price is about 96% below the all-time high, bringing its market cap to about $90 million, making it a relatively small coin. At the same time, the market cap of Magic Internet Money market cap has dropped to $193 million.
The fall of Abracadabra
Abracadabra is a decentralized finance (DeFi) platform that makes it easy for people to borrow and earn interest in its platform. It is part of Frog Nation, a decentralized autonomous organization (DAO) that owns other platforms like Frog USD, Pond DAO, and veNFT among others. Abracadabra is based on Ethereum, Arbitrum, Avalanche, and Fantom technologies.
The DeFi platform has been in a slow decline in the past few months. For example, the total value locked (TVL) in its ecosystem has crashed to more than $371 million. At its peak, the platform had a TVL of over $6 billion. This decline is mostly because of the controversies surrounding Frog Nation. As you recall, Andre Cronje and other leaders of the network decided to leave the organization a few months ago.
The loss of interest is also in line with that of other leading DeFi applications. In the past few months, the TVL of all DeFi applications has crashed from over $250 billion to less than $70 billion. The collapse of Terra and its ecosystem has also contributed to the Spell token sell-off.
Spell Token price prediction
The four-hour chart shows that the SPELL token price has been in a tight range in the past few days. This price is about 47% above the lowest level this year. It is consolidating along the 25-day and 50-day moving averages while the MACD has moved to the neutral point.
Therefore, the coin will likely remain in this consolidation phase and then have a bearish breakout. If this happens, the next key support level to watch will be at $0.00084, which is about 12% below the current level. A move above the resistance at $0.0010 will cancel the bearish view.