SmarDex Token (SDEX) Achieves Record High Price
The native token of the DeFi platform SmarDex, known as SDEX, has experienced a significant surge in value since February 11th. On February 28th, it reached an all-time high near $0.021 before profit-taking by bears began. Several positive indicators from the DEX likely contributed to this rally.
The price of SDEX has been following an ascending channel pattern since September 2023. Although it didn’t manage to surpass the 0.5 Fibonacci level ($0.018) during the rally, breaking above this level could propel the token’s price to the 0.618 Fibonacci resistance at approximately $0.0207. Additionally, sustained buying pressure may lead to a rise to the channel resistance trendline near $0.024, resulting in a 33.3% increase from its current price.
However, there is a downside risk. If the rally stalls or profit-taking intensifies, the SDEX price could drop to the support level near $0.0168. Furthermore, breaching the immediate resistance could push the SmarDex price to test the 0.236 Fibonacci support at around $0.0142, representing a 22% decline from its current levels.
The relative strength index (RSI) for SDEX remains overbought, with a score of 73.68 on the daily charts. RSI is a momentum indicator that helps identify overbought or oversold conditions in asset prices. An overbought RSI level suggests a strong presence of bulls in the market. However, traders often interpret an overbought RSI level as a bearish signal, as it typically precedes a bearish reversal or consolidation phase for the token.
In addition to these technical factors, SmarDex has made significant progress in its expansion plans. It has listed itself on the popular crypto data aggregator CoinMarketCap, gaining exposure similar to major exchanges. Moreover, the protocol has implemented a “buyback and burn” program, burning 3 million SDEX tokens, which accounts for 0.03% of the total supply. The platform has also launched farming campaigns, such as CDX/WBNB and aBTC/SDEX, which could attract more buyers for the token.
SmarDex is a decentralized exchange (DEX) platform within the decentralized finance (DeFi) ecosystem. It aims to address common issues associated with DeFi, particularly impermanent loss, which is a risk faced by liquidity providers when the price of tokens in a liquidity pool changes compared to when they were initially deposited. SmarDex’s protocol design includes mechanisms to mitigate this risk and potentially turn impermanent losses into gains.