Balancer (BAL) and Reef Finance (REEF) Technical Analysis- What Do Trends Suggest?

Balancer (BAL)

DeFi is an umbrella of various open finance solutions. The Balancer is a swapping and auctioning protocol whose currency is BAL, also serving governance.

Past Performance

The BAL price is correcting as Balancer technical analysis in the daily chart reveals.

BAL/USDT prices are within a $12 range zone at $48 and $60, respectively.

Amid the market-wide liquidation, BAL trading volumes on the last day are up 34 percent to $152 million.

Days-Ahead and what to Expect for Balancer

The Path of least resistance in the immediate term is southwards. BAL price is down double digits versus the USD, shedding 19 percent on the last day.

BAL/USDT is trading within a bear breakout pattern following the close above the primary trend line of the last few months.

A notable exception and a net positive for buyers is the shrinking trading volumes accompanying the sell-off.

BAL is down. Bear bars are with lighter trading volumes than those which define bull bars of Apr 13 to 15.

BAL/USDT Price Analysis

Balancer is correcting after stellar performances of Q1 2021.

From volumes analysis, bulls stand a chance since the decline of prices from Apr 16 to 20 is with lighter trading volumes.

Trending within a rising channel, a recovery from $44 could see BAL/USDT snap back to $65.

Sharp losses below $44 invalidate the uptrend, confirming the bear breakout of Apr 18. It is also setting in motion another bear wave that may force BAL prices towards $20—the 78.6 percent Fibonacci retracement level of the Q1 2021 trade range.

Reef Finance (REEF)

A first-mover advantage can define a project. Reef Finance is among the first DeFi projects to launch on Polkadot. Its REEF token enables decentralized governance.

Past Performance

The REEF technical analysis shows that prices range within a $0.0012 zone week-to-date within $0.034 and $0.046. Trading volumes are stable, but prices are generally down in a market-wide correction.

Days-Ahead and What to Expect for REEF Finance

The REEF price is trading at $0.032, down 16 percent week-to-date versus the USD, BTC, and ETH from the daily chart.

However, REEF/USDT prices are still trending within a narrow $0.025 zone. The primary support and resistance levels stand at $0.025 and $0.050 to the upside.

As a common observation, REEF prices are trending lower with lighter trading volumes. There is a marked difference between participation levels in February and April 2021.

REEF/USDT Technical Analysis

From the daily chart, there has been a confirmation of the double-bar bear reversal pattern of Apr 17 and 18.

Volatility is picking up. BBs are diverging as bars align with the lower BB.

A close below $0.030 could see REEF prices drop below $0.025.

Herein, REEF may collapse to $0.020 in a bear trend continuation and correction.

On the other side, if REEF prices find support, bulls may pump prices back to $0.050.