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Spell Token Price Prediction: Why a Drop is Imminent

Since December 25, 2021, the Spell Token has lost 80 per cent of its value. However, the last few days show the cryptocurrency starting to show signs of a bullish move. This includes today’s trading session, where Spell Token has gained about a percentage point in the market.

What is Spell Token

Spell Token is the governance token of the platform. Abracadabra is a lending platform that uses interest-bearing tokens (ibTKNs) as collateral, allowing users to borrow a stable coin called magic Internet Money. The platform is built on a Kashi Lending technology developed and pioneered by SushiSwap.

Why is Spell Token dropping?

Spell token has had a tough 24 hours. This has seen the cryptocurrency lose 68 per cent of its trading volume and drop in market capitalization by 5.7 per cent. The drop in market capitalization of the cryptocurrency resulted in a drop of more than 5 per cent in yesterday’s trading session.

Although today’s trading session looks like the prices are on the rise, the cryptocurrency opened the markets below yesterday’s closing price. Therefore, the prices gain for today in reference to yesterday’s closing price is still likely recording as a drop in price.

Spell Token Price Prediction

The Spell Token prices have gained in today’s trading session. However, the bullish price movement looks weak, and there is a very high likelihood of the prices closing today’s trading session below the opening price. This is partly due to today’s trading session opening below yesterday’s closing price.

Looking at the daily chart below, we can see a strong bearish move in yesterday’s trading session. We can also see a very weak bullish market move. Before yesterday, however, the markets had been on a three-day consecutive bullish move that had seen the prices rise by 42 per cent. However, even with today’s bullish move, my Spell Token Prediction is the price to fall. I expect the prices to continue yesterday’s bearish move. I also expect the prices to trade below the $0.004 psychological level in the coming days.

Spell Token Daily Chart