Moonwell Token Price Analysis
Moonwell, the third-largest lending decentralized application network on the Base blockchain, has recently faced a significant decline in its token price. The Moonwell (WELL) token dropped to $0.07113, marking its lowest point since October 25 and a 36% decrease from its all-time high. Despite this dip, the token still remains 677% higher than its lowest point earlier this year in July.
One of the driving factors behind Moonwell’s recent growth has been its expansion to the Base blockchain network, which led to a surge in assets and a total value locked of $116 million in Base’s DeFi networks. Moreover, the platform has seen substantial user growth, generating approximately $800,000 in fees on Base and Optimism since October.
Analysts believe that the current pullback in Moonwell’s token price might present a good entry point for investors. The Weekend Shift estimated that the WELL token could potentially soar to $1.50 by the end of the year, hinting at a significant surge of 1,775%.
Technical Analysis and Price Chart
The Moonwell token recently experienced a surge to $0.1122 but subsequently declined as investors took profits. It has now dipped below the key support level at $0.080 and is showing signs of a potential bullish continuation according to technical indicators. The Relative Strength Index is approaching the neutral level of 50, and the price is currently above the 50-day moving average.
With the formation of a break and retest pattern, there is a possibility that the WELL token could bounce back and retest the $0.1122 resistance level. However, a break below the 50-day moving average at $0.0576 would indicate further downside.
