Moonwell price dives, but crypto pros expect WELL to rebound

Moonwell, the third-largest lending decentralized application network on the Base blockchain, has experienced a sharp decline, erasing gains made in October.

According to developers, Moonwell has generated about $800,000 in fees on Base and Optimism since October, signaling strong user growth—a trend that could continue in the near term.

Moonwell price has strong technicals

The Moonwell token recently surged to a high of $0.1122 but has since declined as investors took profits. It has dipped slightly below the key support level at $0.080, its highest swing on March 24, and the upper edge of the cup and handle pattern.

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

As such, the WELL token could bounce back as it has formed a break and retest pattern, a common indicator of bullish continuation. If this occurs, WELL may rebound and retest the $0.1122 resistance level. However, a break below the 50-day moving average at $0.0576 would suggest further downside.