SPELL Token Tanks Amidst Double Top Formation, Technicals Hint at Further Decline

The SPELL token exhibits bearish signals, indicating a potential decline towards the support zone of $0.001000. Technical indicators, including double top formation, bearish crossover in RSI and MACD, suggest selling pressure and a negative outlook for the following sessions.

SPELL Token Exhibits Bearish Sentiment Amidst Double Top Formation

Technical Indicators Point to Further Decline

The SPELL token's price action has formed a double top pattern, indicating a potential reversal of its recent uptrend. The token is currently hovering near its 50-day exponential moving average (EMA), which has acted as a support level in the past. However, technical indicators suggest a bearish outlook for the upcoming trading sessions.

The Relative Strength Index (RSI) is trading below the midline and has recently experienced a negative crossover, signaling a shift in momentum to the downside. Additionally, the Moving Average Convergence Divergence (MACD) indicator has formed a bearish crossover and is displaying red bars on its histogram, further reinforcing the bearish sentiment.

Price Volume Profile Indicates Weakness

The SPELL price volume profile shows that the token is currently trading in a range, with $0.001100 serving as a key support level. If this level breaks, the token is likely to continue its downward trajectory and retest the support zone of $0.001000 in the near future. Trading volume has remained below average, suggesting that selling pressure is dominating the market.

Development Activity Spikes, but Sentiment Remains Negative

Despite the bearish price action, SPELL's development activity has experienced a significant spike, with a 500% increase this month. This indicates that the project's team is actively working on its development. However, the total weighted sentiment for SPELL remains in negative territory, reflecting low investor interest.

Social Dominance and Active Social Users Decline

Santiment data reveals that SPELL's social dominance has seen minimal movement, hovering around 0.131%. However, active social users have experienced a significant drop on both Telegram and Twitter platforms, suggesting that investors' interest has waned.

Open Interest Declines, Holders Increase

The total open interest for SPELL has declined significantly, indicating that long positions are being unwound. However, the number of holders continues to increase, suggesting that some investors are accumulating the token despite its current weakness.

Technical Levels

• Support Levels: $0.001000, $0.0009700
• Resistance Levels: $0.001280, $0.001400

Disclaimer

The views and opinions expressed in this article are solely those of the author and do not constitute financial advice. Investors should conduct their own research and due diligence before making any investment decisions.