invezz.com
Reef Finance (REEF/USD) price is up more than 30% over the last five trading sessions after launching the highly awaited Reef Chan v7. The latest version features several upgrades and bug fixes that will make the blockchain ecosystem more competitive in the market.
The smart contract deployment and verification are now fully automated with Remix ERC-20 support, allowing users to easily pick the token they wish to supply. It also launched Reefswap, making it easy for anyone to create a Uniswap V2 liquidity pool for their tokens as well as trade ERC-20 tokens on Reef Chain.
On the other hand, Reefscan can now support full interaction with smart contracts deployed on the Reef chain. As a result, users can easily execute smart contract transactions involving different projects.
Should you buy or sell REEF?
From an investment perspective, decentralised finance investors would be the most intrigued by REEF. Reef Finance is one of the largest DeFi blockchain ecosystems in the market, with a fully diluted market cap of nearly $460 million, as of this writing.
And making major bug fixes in the latest upgrade whilst launching some exciting features, more DeFi developers will be looking to launch their projects on Reef Chain. Therefore, the current spike in REEF price could become a long-term rally pushing the token market cap closer to $1 billion.
The token saw an all-time high trading volume of more than $1.2 billion, in May when it launched the Reef Chain Mainnet, and the announcement of the upgraded version could yield a similar rally.
Can the rally continue?
Technically, Reef Finance price seems to be trading within an ascending channel formation in the intraday chart. As a result, REEF rallied to the overbought conditions of the 14-day RSI before pulling back slightly on Sunday.
The 24-hour trading volume also spiked in the previous three days following last week’s Reef Chain v7 launch. Therefore, traders could target extended gains at about $0.03284, or higher at 0.03699, going into next week.
On the other hand, if Sunday’s pullback continues on Monday, REEF could find support at about 0.02403, or lower at 0.01971.
It could be time to buy REEF
In summary, although REEF seems to have spiked significantly in the last few trading sessions, it still trades several levels below its May highs.
Therefore, with peak trading returning on Monday, Saturday’s spike could be easily extended once more traders catch the wind.