Moonwell token jumped and crossed a key resistance level on Friday as its decentralized finance platform growth continued.
Moonwell (WELL) soared to $0.03900, the highest point since February 1, and up by 157% from its lowest point in March. It jumped on Friday even as the crypto market crashcontinued.
Moonwell token surged as its ecosystem growth continued. DeFi Llama data shows that the total value locked jumped to a record high of $251.5 million, a significant increase from Aprils low of $101 million. Most of these assets are on Base, the layer-2 blockchain that Coinbase launched in 2023.
Moonwell is also seeing more developer activity than most players in the decentralized finance industry. It had 156 commits this month, the highest level since March, as the number of developers rose to six.
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WELL token has also rallied as the community voted to expand its technology to Optimisms Superchain, a solution that will unify contracts across chains, share governance, and offer a single app interface.
Moonwell is one of the fastest-growing players in DeFi. It is a rival to AAVE (AAVE) and other lending protocols, allowing users to deposit their coins and earn rewards, and borrowers to gain access to capital. For example, a USDC deposit attracts a supply APY of 6.8% and a borrow APY of 5.8%.
WELL price technical analysis
Moonwell price chart | Source: crypto.news
The daily chart shows that the Moonwell token bottomed at $0.01510 in April and then gradually bounced back as the crypto market recovered. It has moved above the 50-day moving average and is now at the 23.6% Fibonacci retracement level at $0.038.
It also moved above the crucial resistance level at $0.037, the previous highest point this month.
However, the Average Directional Index has pointed downward, a sign that the rally may not be very strong. Also, the coin is slowly forming a rising wedge pattern, a popular bearish reversal pattern.
Therefore, there is a risk that the ongoing rally will reverse, which may cause it to fall below $0.030. A move above the upper side of the wedge pattern would confirm the bullish trend and point to more gains, possibly to the 50% Fibonacci retracement level at $0.065.