Moonwell token surges past critical resistance level
On Friday, the Moonwell token (WELL) witnessed a significant surge, breaking through a crucial resistance level. The price spiked to $0.03900, marking its highest point as February 1. This represents a stunning 157% recovery from its March low.
Despite the ongoing crypto market crash, MoonwellS growth in its decentralized finance (DeFi) platform has been remarkable.According to DeFi Llama, the total value locked in moonwell’s ecosystem soared to a record $251.5 million. This is a significant leap from April’s low of $101 million.
Most of these assets are on Base, the layer-2 blockchain launched by Coinbase in 2023. the platform is witnessing increased developer activity. This month, there were 156 commits, the highest as March, with the number of developers rising to six.
- Moonwell voted to expand its tech to Optimism’s Superchain
- Unifying contracts across chains
- Sharing governance
- Offering a single app interface
Moonwell is a top contender in DeFi, competing with AAVE. It allows users to deposit coins and earn rewards, like a 6.8% APY for USDC deposits. Borrowers can access capital with a 5.8% APY.
The daily chart reveals that WELL bottomed at $0.01510 in April before gradual recovery. It has now topped the 50-day moving average and sits at the 23.6% Fibonacci retracement at $0.038.
However, the Average Directional Index points downward, hinting at a possible weak rally. the coin may be forming a rising wedge pattern, which could lead to a bearish reversal.A fall below $0.030 is a risk. Conversely, moving above the wedge pattern’s upper side could signal more gains and possibly reach the 50% Fibonacci retracement level at $0.065.
