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BAL Coin Analysis: Bulls are Rising Towards the Year-to-Date High

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BAL Coin Analysis: Bulls are Rising Towards the Year-to-Date High
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Balancer’s DeFi coin has experienced a significant spike in price recently. The coin rose by 53% since the mid of October, offering substantial rewards to investors who took advantage of its good utility. This decentralized exchange and automated portfolio manager has captured the attention of investors with its unique approach to liquidity provision.

How Does the Balancer DeFi Work?

Balancer offers a unique platform for users to create and manage liquidity pools with multiple tokens. With its innovative approach to liquidity provision, the token provides users with flexibility and control over their token portfolios. 

The platform’s automated portfolio rebalancing feature ensures that token amounts are adjusted automatically to maintain desired allocations. It happens whenever the DeFi coin price fluctuates.

By providing liquidity to a Balancer pool, users support the ecosystem for trading cryptocurrencies. In turn, they are rewarded with a part of the trading fee in the form of BAL, the platform’s native token. To operate optimally, Balancer must incentivize two crypto holders. These include users, who wish to liquidate some of their holdings and traders seeking the best price point for an asset.

Technical Analysis and Prediction of BAL Coin Price 

BAL Coin Analysis: Bulls are Rising Towards the Year-to-Date High
BAL/USDT chart by TradingView (Daily time frame)

While 2021 had been a good year overall for the BAL token, things went a bit wrong in 2022. It initially grew to $20.37 on 4 January, but soon went downhill. It hit a low of $10.55 in the wake of Russia’s invasion of Ukraine on 24 February.

The end of March saw it shoot up, reaching $21.75 on 8 April. China’s crypto ban saw it slump down, and on 12 May 2022, with the market in turmoil following the depegging of the UST stablecoin and the collapse of the associated LUNA cryptocurrency, BAL fell to a daily low of $8.15.

Price prediction

In recent November, the market experienced a recovery, with the growth of non-fungible tokens (NFTs) giving cryptos a massive boost. The BAL coin joined in the good times, going on a bull run that saw it break past $4.19 in early November, before dropping again. 

In the bullish activity in early December as bitcoin (BTC) hit new highs, it boosted the market. The BAL coin price hit a periodic high of $4.50 on 9 December. The current support lines are seen on the levels of $3.597 and $3.061. 

In addition to this, bulls can face problems at the resistance levels of $4.362 and $4.984. The current analysis suggests that the bears are strong at the resistance level. It means that buys should hold until the resistance gets broken. 

Conclusion

Balancer offers a unique platform for users to create and manage liquidity pools with multiple tokens. Balancer pool, users support the ecosystem for trading cryptocurrencies. The current trend is bullish but the investors are weak on the immediate resistance.

Technical Levels

  • Support Levels: $3.597 and $3.061
  • Resistance Levels: $3.597 and $3.061
Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos or related indexes comes with a risk of financial loss.

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