4 May 2022
Spell
Market Discovery of the most influent markets in the cryptocurrency world.
What is Spell Token (SPELL) and how does it work?
Spell Token (SPELL) is a token associated with a lending platform, called abracadabra.money, that uses interest-bearing tokens as collateral to borrow a USD-pegged stablecoin called Magic Internet Money (MIM). SPELL coin is the reward token for this platform.
This platform, or SPELL token website, uses the Kashi Lending Technology developed by SushiSwap, one of the major Defi decentralized exchanges to provide isolated lending markets that allow borrowers to adjust their risk tolerance based on the collateral that they decide to use. Users can deposit collateral on the platform and borrow against it, as well as being exposed to yield farming opportunities, where users can stake their tokens and earn SPELL, facilitating liquidity for certain crypto pairs involving Ethereum and Spell. Additionally, users can also open leverage farming positions using MIM from their interest-bearing collateral, as a feature of SPELL coin investing.
This platform, or SPELL token website, uses the Kashi Lending Technology developed by SushiSwap, one of the major Defi decentralized exchanges to provide isolated lending markets that allow borrowers to adjust their risk tolerance based on the collateral that they decide to use. Users can deposit collateral on the platform and borrow against it, as well as being exposed to yield farming opportunities, where users can stake their tokens and earn SPELL, facilitating liquidity for certain crypto pairs involving Ethereum and Spell. Additionally, users can also open leverage farming positions using MIM from their interest-bearing collateral, as a feature of SPELL coin investing.
Since the introduction of this new technology, isolated lending markets have fuelled a wave of innovation in decentralized finance (Defi) lending. The key feature is that in these markets the risk is not shared collectively. As users provide liquidity for a token, if the currency pair loses its liquidity or has any issues with its smart contract, only the currency pair is affected and not the market as a whole. Therefore, this platform is able to offer many more pairs that are not supported on other decentralized exchanges (DEXs).
One of the unique features of this platform is that it allows users to leverage their position and then borrow against the borrowed stablecoin, and therefore create an increase in leverage, all of which is done in one transaction, therefore, only paying transaction fees (or gas) once. Spell coin can be staked on and accrue interest on the platform which will auto-compound and can earn up to 10% of the liquidation fee for certain markets.
One of the unique features of this platform is that it allows users to leverage their position and then borrow against the borrowed stablecoin, and therefore create an increase in leverage, all of which is done in one transaction, therefore, only paying transaction fees (or gas) once. Spell coin can be staked on and accrue interest on the platform which will auto-compound and can earn up to 10% of the liquidation fee for certain markets.
Coin Analysis
Last update 4/5/2022
SPELL was originally launched on Binance in late 2021, being added just a few hours before Christmas day. Unfortunately, since its launch, it has not been performing as many expected and has slowly declined in price, slipping lower and lower. When it first launched, the SPELL coin price was around $0.02, and briefly, for free days, it moved upwards reaching a price level of around $0.026. However, after that initial hike, the price started going downwards, spiraling in this direction and struggling to maintain any type of support.
SPELL/BUSD daily candles chart
As expected SPELL token decreased as the months went on, dropping initially at a support around $0.014 and consequentially, $0.006 and $0.003. This is not a great sign as it shows that investors are reluctant to buy at these lower price levels. During these drops, prices tried on several occasions to bounce back and form a bottom, but often got rejected at the significant local resistance level and continued the downward trend.
Currently, SPELL is battling to maintain the current support level around the $0.003 mark where it sits, and is showing little sign of improvement, meaning there could potentially be more downwards pressure on its price. In order to change this trend and look a bit more bullish, the price of the coin should at least regain the $0.004 level and lateralize above it before making a further bounce upwards.
SPELL token price prediction would suggest that a continuation of this bearing trend is likely to continue, as the coin is currently struggling to create a bottom. However, if Spell managed to consolidate over the current support level and bounce, in the short term, we could see gradually a formation of a bottom that could lead in the following weeks to a trend reversal.
Currently, SPELL is battling to maintain the current support level around the $0.003 mark where it sits, and is showing little sign of improvement, meaning there could potentially be more downwards pressure on its price. In order to change this trend and look a bit more bullish, the price of the coin should at least regain the $0.004 level and lateralize above it before making a further bounce upwards.
SPELL token price prediction would suggest that a continuation of this bearing trend is likely to continue, as the coin is currently struggling to create a bottom. However, if Spell managed to consolidate over the current support level and bounce, in the short term, we could see gradually a formation of a bottom that could lead in the following weeks to a trend reversal.
SPELL is available for trading on BmyBit.com dApp.
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SPELL token coinmarketcap
Join us on Twitter and Discord to talk about crypto trading.
SPELL token coinmarketcap
Author: Matteo Poole
info@yanda.io
info@yanda.io
