The Spell token price prediction remains negative as price action consolidates into a rectangle pattern with an identifiable ceiling and floor. This follows a 5-day losing streak that featured steep drops on 9 May and 11 May 2022. Further attempts at pushing lower met support at 0.00100 before a slight upward retracement confined the SPELL/USDT pair into the range.
The steep decline leaves the Spell token trading at less than 1% of its all-time high price. The governance token for Abracadabra may still be facing a further decline if the emerging rectangle pattern plays out as expected. Typically, the resolution of a rectangle leaves the price action following the direction of the initial trend.
With no fundamental triggers from the Abracadabra project horizon, the price activity heading towards the end of the second quarter (which is still four weeks away) may leave the current bearish Spell token price predictions unchanged. This outlook will only change if the bulls can muster a recovery that takes the price above the pattern, thus invalidating it.
The price is trading within the range formed by the 0.00171 price ceiling and the 0.00120 price floor. A break above this range opens the door for an advance toward the 0.00230 barrier (11 May 2022 high). Above this level, the 0.00301 psychological resistance and 9 May 2022 high forms another target, before 0.00332 comes into the mix.
On the other hand, a decline below the 0.00120 price floor sends the Spell token towards new record lows. The measured move from this decline is expected to lead to a 42.75% drop in price from the current floor at 0.00120, which is 0.00060. There is a possibility of intervening price action forming pivots between the current floor and the support that constitutes the measured move’s completion point.
This post was last modified on May 31, 2022, 13:33 BST 13:33