LEVER price is defying gravity as cryptocurrencies sink

Cryptocurrency prices have been under pressure in the past few days.
Lever has been an outlier as it has jumped by 354% from its lowest level in November.
Its developers will launch a Trader Incentive Program on Tuesday.

Cryptocurrency prices started the week on a somber mood as investors refocused on the upcoming Fed interest rate decision and Fed decision. Bitcoin tumbled below $17,000 while the total market cap of all cryptocurrencies dropped to $843 million. LEVER price defied gravity as the DeFi token jumped to $0.0053. It has jumped by more than 354% from its lowest level in November.

Trader Incentive launch

LeverFi is a small blockchain project in the DeFi industry where it competes with the likes of Uniswap and PancakeSwap. The platform’s main advantage is that it offers permissionless on-chain leveraged trading with up to 10x leverage.

Leveraged trading is extremely popular among traders, which explains why FTX was such a huge success. It is nonetheless one of the riskiest ways to make money because it involves borrowed money. LeverFi also incorporates the concept of margin lending and the ability to earn yields on collateral.

The main reason why the LEVER price is rising is that the developers will launch the Trader Incentives Program on Tuesday this week. This will be a marketing strategy where people who trade in the ecosystem will have a chance to earn 60,000 USD Coins. All traders who participate with a minimum of $100 will be eligible to win these rewards.

The program will run for three months, meaning that it will end on March 12 next year. These funds will be distributed 20,000 USDC per month. Traders will be ranked by volume, with the first one getting 4,000 USDC. The second, 3rd, 4th, and 5th members will get 2,500 USDC, 1,500 USDC, 1,000 USDC, and 500 USDC, respectively. The other participants will share the remaining reward pool.

LEVER price prediction

LEVER/USD chart by TradingView

The 4H chart shows that the LeverFi price has been in a strong bullish trend in the past few sessions. As it rose, it managed to move above the important resistance at $0.0028, the highest point since November 27. It has managed to rise above all moving averages while the Relative Strength Index (RSI) has moved above the overbought level.

Therefore, I suspect that the LEVER price will resume the downward trend as investors sell the fact. Historically, investors tend to sell an asset after a major event happens. It is known as buying the rumour and selling the fact.