Should I buy Balancer (BAL) in July 2022?

Balancer BAL/USD has weakened from $21.87 below $4 since April 08, 2022, and the current price stands at $5.

Balancer launched Optimism to help Ethereum achieve greater scalability

Balancer is an automated portfolio manager and trading platform that seeks to incentivize a distributed network of computers to operate an exchange where users can buy and sell any cryptocurrency.

It is important to say that Balancer has similarities with index funds, where users create funds based on the cryptocurrencies in their portfolios; still, there is also one important difference.

Index funds and other types of investment portfolios charge investors high fees for managing their funds, but with Balancer, you don’t need to pay high fees.

Balancer allows you to rebalance your portfolio by trading without a financial intermediary, and instead of paying fees to portfolio managers, you collect fees from traders who rebalance your portfolio by following arbitrage opportunities.

In order to find the best available price for traders, Balancer uses Smart Order Router and enables efficient trading by pooling crowdsourced liquidity from investor portfolios.

Balancer allows you to trade thousands of token pairs instantly at optimal rates, while everybody who provides liquidity to a Balancer pool earns a portion of the trading fee paid to the network for the use of their funds.

Many important projects already collaborate with Balancer, and the most popular ones include Aave, DeFiance Capital, Three Arrows Capital, Token Engineering Academy, Radicle, and Mask.

Balancer currently ranks in the top five decentralized exchanges by total value locked on Ethereum, and according to the latest news,  Balancer has launched scaling solution Optimism. The co-founder and CEO of Balancer Labs, Fernando Martinelli, said:

Optimism is one of several projects working to help Ethereum achieve greater scalability. It leverages a technology known as Optimistic Rollups, a scaling solution that bundles transactions together on a separate network and then settles them as a single transaction on the Ethereum mainnet.

Balancer tokens have the symbol BAL, and in the long term, BAL owners may be able to vote on the weekly rate of BAL distribution, Balancer protocol fees, or even the possibility of launching Balancer on other blockchains.

The total supply of BAL tokens is limited and stands at 100 million BAL, which will be distributed by 2028. The last three months have been extremely taff for BAL, and the risk of further decline is still not over.

Technical analysis

Balancer (BAL) has collapsed from its recent highs above $21, registered on April 08, and according to technical analysis, the risk of further decline is not over.

Data source: tradingview.com

BAL remains in a bear market, and if the price falls once again below $4 support, the next price target could be at $3.5 or even below.

The first resistance level stands at $6, and if the price jumps above this level, it would be a “buy” signal, and we have the open way to $7.

Summary

The last three months have been extremely taff for Balancer (BAL), and according to technical analysis, the risk of further decline is not over. Falling below $4 supports the continuation of the bearish trend, and we have the open way to $3.5 or even below.

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