The price of Stella (ALPHA) has surged by over 60% in the past 24 hours, capturing the attention of many within the crypto community. This dramatic price action is particularly noteworthy as ALPHA has been trading sideways since July. The question arises: what has triggered this newfound bullish momentum?
The current strength of Stella can likely be attributed to increased interest in its unique offerings. Stella aims to advance the landscape of leveraged decentralized finance (DeFi) by providing a cost-free leverage protocol.
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This innovation addresses the need for improved leverage systems, which are essential for driving greater adoption of decentralized exchanges and money markets—key components of the DeFi ecosystem. As the usage of these foundational elements rises, it paves the way for new protocols and innovations to access deeper liquidity and a more robust infrastructure.
Stella’s Strategy allows users to amplify their investment positions by borrowing funds from Stella Lend without incurring interest costs. This model enables users to take larger positions, potentially leading to higher yields from trading fees, token rewards, or price exposure.
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Show more +Unlike traditional lending practices that accrue interest over time, Stella employs a “Pay-As-You-Earn” model. Under this system, a fee is charged only when a leveraged position closes at a profit, allowing for a more flexible approach to borrowing.
Stella Lend serves as a platform for users looking to earn passive income through in-kind token rewards, with no caps on lending annual percentage yield (APY). Borrowers utilizing Stella Strategy can access these funds to establish leveraged positions, while the yields generated by these borrowers are redistributed to lenders as lending APY, thanks to the “Pay-As-You-Earn” model.
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What Could Be Next for ALPHA Price
Currently, the price of ALPHA has broken through a descending channel resistance and is facing another resistance level around $0.13. Should it break above this resistance, there is potential for the price to climb to the upper channel limit near $0.20.
Conversely, if it fails to break this resistance, a retracement back to the previously broken channel resistance is expected, which may then act as a support level.
The Relative Strength Index (RSI) is currently at 88, indicating that the price may be overbought. This suggests a possible retracement to the nearest support or the broken descending channel resistance, especially if it does not close above the $0.13 resistance today.
Additionally, the 50-day, 100-day, and 200-day simple moving averages are all positioned below the current price and could serve as support should the price revisit the broken descending channel.
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