Spell token price is up by 18 per cent in today’s trading session after a week of battering that had seen it lose 68 per cent of its value in five days. The current price gain coincides with the current recovery of the cryptocurrency industry, which has seen market capitalization rise by seven per cent in the past 24 hours.
Before the current streak of bearish moves, Spell Token had been among the top-performing cryptocurrencies for weeks. According to a rating done by InvestorsObservers, a few weeks ago, they had indicated that the cryptocurrency posed low risks to its investors. However, as the cryptocurrency recovers, investors are likely to stay away from risky projects.
Their parent company, Abracadabra, had also started making moves that would have seen the platform continue to expand. For example, before the cryptocurrency crash, the company had announced its intentions of an NFT lending platform called AbraNFT. Such market moves would have also seen a surge in the usage of the Spell Token, resulting in the price increase of the cryptocurrency.
Spell Token Price Prediction
Spell Token has been in a bearish trend for weeks. However, the past few days saw the move become more aggressive, which resulted in the token losing 68 per cent in five days. In today’s trading session, however, the prices have shown signs of recovery, rising by 18 per cent. Today’s session is also showing a likelihood that the bullish trend is not a bearish flag but rather a trend reversal.
The chart below shows that the prices recently moved out of the descending channel trading pattern. This was partly due to the cryptocurrency crash experienced by almost all cryptocurrencies. However, today’s session shows the likelihood of the prices returning inside the descending channel. If that is the case, then I expect to see the prices pushing forward and trying to hit the upper trend line of the descending channel.
This will likely result in Spell token trading above the $0.003 price level. However, if the prices fail to break inside the descending channel, then my trade analysis will be invalidated. It will also mean the bearish move is still dominant; hence downward move should be expected.