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- 1 Balancer has a TVL of $974 Million which has been declining from the start of June 2023
- 2 BAL technical indicators are currently favoring a bearish momentum in price. It has seen a drop of 15% in the past seven days
Balancer is an automated market maker which is built on the Ethereum blockchain.The protocol functions as a self balancing weighted portfolio. Balancer is very similar to Curve and Uniswap which allows users to create pools. There are basically three types of Pools in a Balancer, private pools, shared pools and smart pools which functions differently than others. It was founded by Fernando and Mike in 2018 and has gained significant popularity since then.
Balancer protocol allows users to have eight assets per market which are weighted by percentage and rebalanced automatically. Balancer has a TVL of $974 Million which declined over the past few weeks. The revenue of the Balancer recorded a decline from the start of the year. Meanwhile, the transactions in the Balancer has observed a decline and is near 2.84Txs with the active users near 1.35k daily.
Balancer has a market cap of $224 Million and is ranked 112th in the CMC. The Bal Average swap fee on the mainnet is 0.817%. The social dominance of the BAL observed a decline in the past few weeks. The supply of the BAL is 96,150,704 in which 51.8% is circulating in the market.
Will BAL Price Hit a Rebound Soon?
Balancer protocol has been observing a downside momentum on the weekly technical chart. BAL price is currently trading near the value of $4.48 with a small gain in the intraday session. Bearish candles are being formed on the daily chart. The downside trend of the BAL price could halt near the $4 mark. Meanwhile, the upside trend of Balancer can see a resistance near $5. BAL price is trading below the 50 and 100 Daily Moving Averages. If the DMA sees a negative crossover then a strong downside trend can be seen in future.
The RSI of BAL is near 25 with a strong downside slope in it. The overall sentiment of the RSI is bearish.
Summary
Balancer has been observing a decline in TVL and active addresses for a few weeks now. BAL token price is under bearish momentum but can see a new high in the future.
Technical Levels
Major Support:$4
Major Resistance;$5
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
