Moonwell price dives, but crypto pros expect WELL to rebound

Moonwell, the third-largest lending decentralized application network on the Base blockchain, fell sharply, erasing gains made in October.

Moonwell (WELL) token fell to $0.07113, its lowest point since October 25 and 36% below its all-time high, pushing its market cap to over $226 million. However, it is still 677% higher than its low in July this year.

Moonwell is a leading lending platform that initially launched as a parachain in the Polkadot (DOT) ecosystem and was met with a lukewarm response.

This year, its growth accelerated further as developers expanded Base, the blockchain network founded by Coinbase. AAVE (AAVE) rival has seen a massive increase in assets on the network since its launch. Base’s total value locked in DeFi networks has increased to $116 million.

According to the developers, Moonwell has generated nearly $800,000 in fees from Base and Optimism since October, signaling strong user growth; It is stated that this trend may continue in the near term.

Moonwell’s growth coincided with the growth of Base, which emerged from nowhere to become the sixth-largest chain in the industry. It has also become the third largest blockchain for decentralized exchanges.

Some analysts believe the ongoing pullback would be a good entry point. The Weekend Shift predicted in an

Moonwell price has strong technicals WELL price chart from TradingView

Moonwell token recently rose to $0.1122 but fell as investors took profits. It has fallen slightly below the key support level at $0.080, the reversal of the March 24 high and the upper edge of the cup-and-handle pattern.

The two lines of the MACD indicator are forming a bearish crossover, while the Relative Strength Index is approaching the 50 neutral level. The price remains above the 50-day moving average.

Therefore, the WELL token may bounce back as it forms a breakout and retest pattern, which is a common indicator of a continuation of the uptrend. In such a case, WELL could recover and retest the $0.1122 resistance level. However, a break below the 50-day moving average at $0.0576 could signal further declines.