Serum (SRM) has weakened more than 40% since January 21, 2023, falling from $0.75 to a low of $0.27. The current price of SRM stands at $0.38, which is more than 85% off from its 2022 highs.
Today, Crypto Lists will discuss Serum (SRM) price estimates from a technical and fundamental analysis perspective. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk, and how much margin you have if trading with leverage.
Serum brings speed and low costs to DeFi
Serum is a decentralized exchange (DEX) and ecosystem that brings unprecedented speed and low transaction costs to DeFi while remaining fully trustless and transparent. Serum is built on Solana, which is one of the reasons why it can fully benefit from the speed and cost-effectiveness of transactions.
Solana aims to increase user scalability through faster transaction settlement times, and because of this, Sam Bankman-Fried, the founder of FTX and Serum, chose to build the decentralized exchange on Solana. Most DeFi protocols are slow and expensive, and it is also important to say that Serum’s on-chain infrastructure is not made only for financial applications but also for growing industries like gaming.
Serum is built to meet the demands of a larger and more diverse group of users, and it offers cross-chain support, meaning that traders can trade tokens built on other platforms like Ethereum or Polkadot. Traders can submit orders with prices, sizes, direction and have full control over their trading via Serum’s automated on-chain limit Order Book.
Unlike automated market making, where traders buy and sell cryptocurrencies from liquidity pools, Serum gives traders the ability to choose the price that they wish to buy and sell their assets and the ability to pick any order size they desire. In this way, Serum is intended to operate a new kind of decentralized exchange that intends to rival those built using an automated market maker (AMM) such as Uniswap, Sushi, and Bancor.
Supply: 263,244,669 / 10,161,000,000
Release date: August 11, 2020
Description: Buy Serum to unleash the power of DeFi!
Risk warning: Trading, buying or selling crypto currencies is extremely risky and not for everyone. Do not risk money that you could not afford to loose.
A powerful utility token
SRM is the utility token of the Serum, it is the preferred form of payment for transfer fees, and users can spend SRM to enable reduced fees on Serum’s exchange. SRM can be staked on a node, and some parameters without large security risks may be modified via a governance vote of SRM tokens.
SRM came under selling pressure after the collapse of the FTX crypto exchange, and the current price of this crypto stands at $0.38, which is more than 85% off from its 2022 highs. Sam Bankman-Fried was a huge investor and founder of Serum, and because of this, the collapse of FTX had an even bigger influence on SRM than on some other cryptocurrencies. This situation will continue to influence SRM negatively probably several more quarters; still, investors should keep in mind that Serum has a decent amount of users, and it will probably get over this negative case.
The total supply of SRM is limited to 10 billion tokens, and this crypto can be interesting for investors that believe in the future of building decentralized applications on Solana. Further, investors may also be interested in using Serum’s exchange to access its cross-chain swap functionality and trade tokens from many different platforms.
The sentiment on the cryptocurrency market has improved this Wednesday, the price of Bitcoin hit its highest price level since August 2022 (above $24,300), and this situation also positively influenced Serum (SRM). The latest economic numbers from the United States boosted risk asset sentiment after Retail sales and the Empire State Manufacturing Index both surpassed market expectations. Edward Moya, a senior market analyst at Oanda, said:
“All of the data continues to point towards how strong the economy is, investors still believe in the U.S. economy, and they are growing confident that the worst is over. Cryptocurrencies and stocks are benefiting on hopes that the U.S. economy won’t have a recession and that favorite mega-cap tech plays will lead the way.”
Technical analysis for SRM
Serum (SRM) is advancing this trading week, and according to technical analysis, everything indicates that the price could advance even more, especially if the price of Bitcoin continues to perform well. The current price of SRM stands at $0.38, and as long the price of SRM is above $0.30, we can’t talk about a trend reversal, and the price of this crypto remains in the BUY-ZONE.
Important support & resistance levels for SRM
On this chart (the period from June 2022), I marked important support and resistance levels that can help traders to understand where the price could move. According to technical analysis, bulls control the price movement of SRM for now, and if the price advances above $0.45, the next target could be resistance that stands at $0.50. The important support level is $0.30, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $0.25. If the price drops below $0.20, which represents very strong support, the next target could be located around $0.15 or even below.
What speaks for the rise in the SRM price
The amount of SRM traded over the last several hours saw a significant increase, and if the price advances above $0.45, the next target could be resistance at $0.50. Traders are buying SRM after the latest economic numbers from the United States boosted risk asset sentiment. According to the technical picture, SRM still has room for the upside, especially if the price of Bitcoin continues to perform well.
What indicates the downfall of SRM
This trading week has been very successful for SRM for now, but investors should continue to take a defensive investment approach as the macroeconomic landscape remains uncertain.
The price of SRM is also correlated with the price of Bitcoin, and if the price of Bitcoin drops again below the $22000 price level, that would certainly have a negative influence on the price of SRM.
What do analysts and experts say
The sentiment on the cryptocurrency market has improved this Wednesday, the price of Bitcoin hit its highest price level since August 2022 (above $24,300), and this situation also positively influenced Serum (SRM). The latest economic numbers from the United States boosted risk asset sentiment after Retail sales and the Empire State Manufacturing Index both surpassed market expectations.
Craig Erlam, an analyst at broker Oanda, said this week that crypto’s resilience is encouraging despite negative regulatory headlines. Edward Moya, the senior market analyst at Oanda, said that investors still believe in the U.S. economy, and they are growing confident that the worst is over. However, investors should keep in mind that the macroeconomic landscape remains uncertain and Bloomberg Intelligence’s Senior Macro Strategist, Mike McGlone, said that the U.S. stock market together with a cryptocurrency market could see another losses over the coming month.
Disclaimer: Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.
