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- 1 The BAL crypto asset is showing bearish momentum; the RSI is falling steadily.
- 2 The price movement structure of the BAL crypto asset is exhibiting bearish features.
The balancer is a protocol that acts as a self-balancing weighted portfolio, price sensor, and liquidity provider. It enables users to gain profits through its newest token ($BAL) by accumulating in modifiable liquidity pools.
Balancer is congruent to Uniswap and Curve, in that it permits anyone to make pools of tokens. The pool molds itself to keep the tokens equally weighted despite changes in their price. However, one unique feature of Balancer is that more than one token can be added and ETH is not needed.
The balancer is not the first DeFi protocol to use AMMs, but it has brought a new face and approach to liquidity.
The special characteristic of the protocol is that it permits Liquidity providers to have up to eight assets per market which are weighted by percentage and rebalanced automatically.
With Balancer, users do not have to deposit 50% of the desired asset but are allowed to decide how much of a supported asset they want to deposit.
Another special characteristic of Balancer Lab is that users can generate a high return on assets that are in low demand through arbitrage opportunities and slippage reduction.
For Balancer, security is the prime concern and that is why the protocol has been fully audited three times by Trail of Bits, ConsenSys, and OpenZeppelin.
There are no admin keys or backdoors, making it trustless, and the balancer pools are not upgradeable. Balancer does not support tokens that do not follow the ERC-20 standard, even though they may be used in some pools.
The tokens held on Balancer pools are not administered by Balancer but are smart contracts. However, that does not eliminate the inherent risks of smart contracts.
The configurable rights pools (CRPs) ensure that tokens with known issues are prevented from being used in pools. It also ascertains that all other tokens securely communicate with the protocol.
Balancer Crypto Technical Analysis In 1-D
The BAL crypto asset is in a strong decline as the MACD indicator is showing a bearish crossover. The MACD line took rejection from the signal line. The MACD is at -0.04 and the signal line is at 0.03.
The price movement structure of the BAL crypto asset is exhibiting bearish features and could reach lower levels. Furthermore, it has displayed a decline in the price performance in the past week by 17.51%, and the past month by 12.73, this demonstrates a strong downward strength.
At the time of publishing, the Balancer crypto was at $3.78 with a fall of 4.55% over the 24-hour period.
The BAL asset is showing strong bearishness and falling potential as it declines below all of the major EMAs. Therefore, if the price fails to manage the current level, then the price could slump and display a bigger downfall in the price. The current support is at $3.50.
On the flip side, if the buyers’ accumulation increases and shows sustainability in the market, the Balancer price could extend upwards and the possible resistance could be $4.50.
The BAL crypto asset is showing bearish momentum and the RSI is falling steadily and currently at 42.20, as it is still approaching the 30 level and taking a direct rejection from 14 SMA. This highlights that the BAL crypto asset is not gaining the heat and can continue to drop lower.
Summary
The price movement structure of the BAL crypto asset is exhibiting bearish features and the price can reach lower levels. Furthermore, it has displayed a decline in the price performance in the past week by 17.51%, and the past month by 12.73%, which demonstrates a strong downward trend.
Therefore, if the price fails to stay at the current level, then the price could slump and display a bigger downfall in the price. The current support is at $3.50.
Technical Levels
Support Levels: $3.50
Resistance Levels: $4.50
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency 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.
