Yerevan (CoinChapter.com) – REEF, the governance token of decentralized finance (DeFi) Reef Finance, built atop Polkadot blockchain, traded at $0.021 ahead of the European session Thursday. Meanwhile, the 1D price chart against USD revealed a falling wedge formation.
Technicals for Reef
REEF has been trading in a falling wedge formation since early May. The bottom trendline of the pattern acted as support, keeping the price from plummeting. The upper descending trendline capped the token’s attempts for a bullish breakout—that left REEF inside tightening trading range skewed to the downside.
Traders see the formation as a cue to go long on the asset. That said, as the REEF price approaches the Wedge’s apex, its likelihood of breaking out to the upside would be higher, providing it comes alongside a spike in trading volume.
If it does, then the REEF prices expect to reach the horizontal lines presented in the chart below as their upside targets.
Also read: Reef Finance Enters 140th Day of Price Consolidation — Bull Run Ahead?
Possible outcomes
If the Reef price does slide further south, it has a significant support raft ahead.
At the bottom of the formation ($0.019 price margin), the red line has proven its significance on multiple occasions. Most recently, Reef tested the support on June 12. It bounced off the line and managed to reach the upper trendline of the wedge. Judging by the formation, the token could test the $0.019 margin once again soon enough if it fails to break upward.
Moreover, the 20-day exponential moving average (EMA-20: blue wave) has acted as resistance since the crash on May 19. Reclaiming it as support could also maintain REEF’s bullish trend.
Should Reef succeed in logging a bullish break, it still has two critical support/resistance lines to conquer. The first one lies at the $0.030 price margin (black line on the chart above). It has acted as both support and resistance since February. The second line stands at $0.051. As of the moment, Reef is a long way from the margin. However, if the token adopts a bullish bias, it will have to test the $0.051 resistance.
Alliances for Reef Finance
Reef Finance announced a new alliance with Oddz Finance, a Multi-chain options trading platform on Binance Smart Chain. According to Oddz, both companies share a similar vision of making DeFi accessible to all and simplifying investing in different DeFi applications. The partnership is promising for both protocols and will bring more applications to Oddz and Reef.
The DeFi ecosystem also tweeted about all the partnerships established in the past month.
The growing number of partnerships, and the recovery on the crypto-market as a whole, might suggest a bullish outcome for the price after the falling wedge pattern is complete. There are also bearish signs ahead. However, the upcoming sessions will determine if the ecosystem will take the bullish route or the bearish one.
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