Reef Finance (REEF/USD) (REEF/USDT) spiked nearly 60% last week before pulling back on Monday to trim the gains to just over 40%. The DeFi blockchain ecosystem experienced a significant rise in the trading volume after launching Reef Chain v7, the advanced version of its blockchain platform. 

The v7 version fixes several bugs whilst also introducing some exciting features that will give Reef Finance a competitive edge in the rapidly growing DeFi market. As of this writing REEF/USDT traded at about $0.0278, pulling back from the Saturday highs of about $0.0312.

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Therefore, investors could look at the pullback from two perspectives.

The pullback could be an opportunity to buy

Although REEF spiked nearly 60% last week, it never came close to retesting this year’s highs, thus leaving room for more upward movements. Moreover, the price has since pulled back to the normal trading zone of the 14-day RSI after venturing into overbought conditions late last week.

Therefore, investors could target potential rebound profits at about 0.0312, or higher at about 0.0365. And still, it won’t be close to reaching its May highs. Therefore, it would make sense to try to ride the bull-run, rather than panic due to Monday’s pullback.

Moreover, cryptocurrency prices appear to be on a solid bull-run in general, which should boost Reef Finance token soar higher.

Or it could be time to take profits

Although Reef Finance has retreated from last week’s spike, the current pullback may not be over yet. 

The 0.0312 price level is the highest it has traded since May 28, while the current price of about 0.0278, is one of the highest it has traded since then, only going above it on two previous occasions.

Therefore, some investors may choose to take some profits while the price is still high ahead of a potential correction in crypto prices.

Reef Finance long term outlook

Reef Finance is a Decentralised Finance (DeFi) blockchain ecosystem that allows developers to launch and verify smart contracts automatically. The latest upgrades also allow users to easily create a Uniswap V2 liquidity pool for their tokens whilst also enabling them to trade ERC-20 tokens on Reef Chain.

REEF will also derive growth from its ability to support full interaction smart contracts deployed on Reef Chain, as this allows the instantaneous executions of smart contracts.

The platform will also benefit from the overall growth of the decentralized finance industry. It is one of the intriguing segments of the cryptocurrency market because of the way it disrupts project finance. 

As a result, unlike regular cryptocurrencies, whose prices are driven by speculation, you could say DeFi tokens have some underlying value, that could increase as more companies embrace DeFi.

Bottom line

In summary, Reef Finance currently has a fully diluted market cap of about $450 million. However, if the price could rally back and retest this year’s highs, REEF could easily be worth closer to $1 billion, making it one of the largest DeFi ecosystems in the market.

And having launched just last December, the long-term growth looks even more exciting. Therefore, REEF could be one of the crypto projects that traders may want to get involved in, in some way.