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, DeFi tokens fly, what is happening?, Forex-News, Forex-News
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DeFi tokens fly, what is happening?

, DeFi tokens fly, what is happening?, Forex-News, Forex-News

, DeFi tokens fly, what is happening?, Forex-News, Forex-News

The DeFi market is having a very positive streak, with some tokens showing really interesting gains at a time where Bitcoin seems to slow down its big momentum.

At time of writing, Chainlink the largest DeFi token is trading at $ 12.91 with gains of 0.44% in the last 24 hours and 22.78% in the last 7 days.

In the 2nd and 3rd place are the WBTC that represents Bitcoin on the Ethereum blockchain, and Dai, one of the largest among stablecoins.

But from the 4th DeFi token, we begin to see the great recent positivism reflected in this ecosystem.

AAVE presents gains of 8.12% in the last 24 hours, and a staggering 116.32% in the last 7 days.

It is followed by UNI with gains of 5.04% in the last 24 hours, and 36.35% in the last 7 days.

YFI also stands out with gains of 82.59% in the last 7 days. What is happening? Will this trend continue?

Capital returns to the DeFi market and its tokens begin to benefit

While Bitcoin got all the attention as it broke resistance after resistance, much of the altcoin market remained immobile, some even continuing to decline.

However, now that BTC’s bullish momentum seems quite widespread, the bulls are starting to run out, taking profits and looking for greener terrain where the excitement may just begin.

In large part the positivism in DeFi tokens is due to this circulation of capital, now that investors know that the uptrend in decentralized finance has returned.

The total value locked in decentralized protocols has marked a new all-time high, demonstrating the large capital inflow in the wider ecosystem.

In addition to this, if we look at the price action of tokens such as AAVE and YFI we can see that the explosive increases have also been motivated by squeezes, a situation in which those who were betting on the downtrend are forced to exit as soon as possible due to the heavy purchases that appeared.

Knowing in general what is happening, let’s see the behavior of the largest DEFI tokens, in order to forecast their future prices.

, DeFi tokens fly, what is happening?, Forex-News, Forex-News
Total value locked in DeFi. Source: DeFi Pulse.

As I mentioned in a recent post, LINK is resuming the uptrend in the medium term; however, as is common, some obstacles will slow down the price as it recovers.

Today the hurdle is at $ 12.80, but the odds are in favor of a break of this resistance, which would clear the ground towards $ 16.36.

Considering that we are seeing momentum develop over the medium term, none of these barriers may be really relevant issues for bulls. The price should seek a new all-time high in the near future.

, DeFi tokens fly, what is happening?, Forex-News, Forex-News
Chainlink price chart, TOP 1 among DeFi tokens. Source: TradingView.

AAVE flies and marks an all-time high, but it may be about to regress

Without a doubt, among the largest DeFi tokens, the one that has performed the best is AAVE. It shows gains of more than 100% in the last 7 days, which made it reach an all-time high today.

All that fall that was presented was eliminated with high volume bullish candles, demonstrating what spoke of hasty departures of sellers, who were betting on the evident downtrend that the token was bringing.

Today the AAVE trend is clearly bullish, but momentum is quite developed and a correction should start sooner rather than later.

When we look at the chart with 4-hour candles, we notice how the price is very overbought, also leaving a force divergence between the direction seen on the candlestick chart and the RSI.

, DeFi tokens fly, what is happening?, Forex-News, Forex-News
Daily chart of AAVE vs USDT. Source: TradingView.

UNI still has plenty of room to generate profit

Uniswap’s UNI also recently looked at it in an overview of DeFi tokens, and it spoke that despite the downtrend it was in, it was not very smart to ride this trend when we were looking at the low volume of the drop.

Today UNI is embroiled in a short-term uptrend, and even though the bulls are not showing much strength yet, they have plenty of room to continue generating profits.

All our publications are informative in nature, so in no case should they be followed as investment advice.

, DeFi tokens fly, what is happening?, Forex-News, Forex-News

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, DeFi tokens fly, what is happening?, Forex-News, Forex-News

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