SmarDex Token Price Reaches New ATH, Could Rally Over 33% Higher

NOIDA (CoinChapter.com) — DeFi platform SmarDex’s native token SDEX has been on a bull run since Feb. 11, rising to an all-time high near $0.021 on Feb. 28 before bears started booking profits. The DEX recently created a few bullish cues that likely contributed to its token’s rally.

Moreover, SDEX price would need to move above a key resistance level to continue its bull run.

SDEX Price Moving Inside Ascending Channel

The SmarDex token has been moving inside a multi-month ascending channel since Sept. 2023. The token’s rally failed to clear the 0.5 Fibonacci level ($0.018), managing to only needle above it before paring gains.

However, moving above the 0.5 Fibonacci could help the SDEX price rally to the 0.618 Fibonacci resistance near $0.0207. Moreover, sustained buying pressure would help the SmarDex token price rise to the channel resistance trendline near $0.024, adding 33.3% gains to the token’s current prices.

But, but, but, but… there is a flip side. If the rally stalls or profit booking increases, SDEX price risks dropping to the resistance near $0.0168. Furthermore, breaching the immediate resistance might force SmarDex price to test the 0.236 Fibonacci support near $0.0142, a drop of 22% from current levels.

The relative strength index for SDEX remained overbought, with a score of 73.68 on the daily charts. RSI is a momentum indicator measuring asset price movements to identify overbought or oversold conditions. The overbought RSI level indicates the strong presence of bulls in the market.

However, traders often consider an overbought RSI level a bearish signal since the occurrence usually precedes a bearish reversal or consolidation phase for the underlying token.

Bullish Cues

SmarDex claimed it is working on its expansion’s “next stages” and has listed itself on the crypto data aggregator website CoinMarketCap. The DEX’s claim to fame? Being displayed in the same way as the major exchanges.

However, all of SDEX’s bullish cues are not hype. For instance, the protocol recently announced that it had 3 million SDEX tokens as part of its “buyback and burn” program. The burnt tokens account for 0.03% of the total SDEX supply of 10 billion.

Moreover, the platform has recently launched several farming campaigns, such as CDX/WBNB and aBTC/ SDEX, which could attract more buying pressure for its token.

What Is SmarDex?

SmarDex is a decentralized exchange (DEX) platform within the decentralized finance (DeFi) ecosystem.

It aims to address common issues associated with DeFi, particularly impermanent loss, a risk liquidity providers face when the price of tokens in a liquidity pool changes compared to when they were deposited.

SmarDex introduced mechanisms that it claims mitigate the impermanent loss risk, potentially converting impermanent losses into gains through its protocol design.