- REEF/USDT pair did a 2X in October.
- Reef Finance’s native token surged into the overbought zone, with RSI ticking above 70.
- REEF prices could drop to the lower trendline of the Ascending Channel before rising again.
KOLKATA (CoinChapter.com) – Supercharged REEF bulls, doubled the price of Reef Finance’s native blockchain asset in October. But frantic buying landed the token in the overbought zone. Sellers sold the local top, but the REEF/USDT pair could trim more gains before the next leg up.
Related: Reef Finance upgrade v7 goes live, fueling REEF’s 10% rally
What Is REEF? How Does It Fit In the Reef Finance Ecosystem?
REEF is a multi-purpose utility token and Reef Finance’s native governance token. Apart from facilitating community-based decision-making, it comes in handy for paying fees. Plus, the token forms the basis of the reward system in the Reef ecosystem and is its official store of value.
Reef Finance is a cross-chain platform that operates as a bridge between centralized and decentralized exchanges for traders to avail the best DeFi investment opportunities. The Reef Yield Engine makes this possible by letting users leverage artificial intelligence to lend, borrow, stake their tokens.
Related: REEF Finance Receives A $20 Million Investment From Alameda Research
The platform recently launched Reef Chain, its own smart contracts blockchain. It is Ethereum Virtual Machine (EVM) compatible and allows native Ethereum developers to host their applications at low fees and long-term scalability potential.
Despite its multi-faceted use case, the REEF token would still have to undergo downward volatility before the next rally.
Inevitable Correction
REEF’s ascent to $0.035 triggered a selloff as bears spotted overbought conditions and quickly lined up to book profits. As a result, the REEF/USDT pair dipped to $0.030, but the Ascending Channel technical setup, which governed the pair’s price action over a multi-month timeframe, shows that a further drop is nigh.
If a correction shapes up, bears could push down REEF to $0.020, but the move is subject to the overall sentiment of the aggregated cryptocurrency market. Hence, the correction is just an estimate for the worst-case scenario. Relative strength index (RSI) numbers would begin to look up after the selloff nears exhaustion, resulting in a push upward to $0.045.
Overall, REEF’s trend sparks bullish vibes as the token printed higher lows since October 12.
