Nov 4 saw the launch of Ethereum 2.0 deposit contracts, leading ETH price to break the bark of $400 and Bitcoin to rebound from $13,700. As of Nov. 6, Bitcoin broke through the mark of $15,000, climbing to the peak of $15,985, which recorded an all-time high since February 2018. Following few days, Bitcoin price is remaining the range of $15,000 and the bullish momentum has maintained.
Amid it, a batch of mainstream cryptocurrencies such as LTC, EOS and BCH did not show much improvement; instead, a number of DeFi leading coins such as YFI and AAVE rebounded strongly and became the leading players in the market. As the total value locked rose to a new high, the DeFi protocol began to flourish again.
Aave experienced a sharp spike in demand on November 5, and its price soared by more than 120%. This DeFi token rose from the low of $26.4 to the high of $59 within four days. Despite huge gains in such a short period of time, the price may be ready to pull back.
Uniswap seems to have reached the lowest point in the market on November 5, and the chart shows that buying pressure has continued to increase since then. In the past four days, it has gained more than 68%. However, investors do not feel so bullish as per the 200 four-hour moving average on the 4-hour chart. Although the price has successfully broke this key resistance area over the past few days, the price has been rising so far.
After yEarn Finance has soared by nearly 143% recently, it seems that it has entered the consolidation period. The stagnant price movement appears to have led to the formation of a symmetrical triangle in its hourly chart.
By measuring the distance between the initial high and low of the chart and adding it to the breakout point, the symmetrical triangle suggests a target of 23.5%. The increased buying pressure behind the crypto may make it trade at approximately $19,000. Although symmetrical triangles can form a continuous trend, they can also form a reversed upward trend. As a result, it must break the support trend line at $14,000.
Tokens in DeFi sector rebound collectively
Although global financial markets have assessed the impact of a potential COVID-19 vaccine, the total value locked in DeFi protocol continues to hit new highs. Despite the huge losses incurred over the past two months, the high level of interest in crypto sector shows that it boasts more improvements.
Aave, Uniswap and yEarn Finance seem to have reached the lowest point in the market on November 5. And now investors are becoming greedier. Generally speaking, these three cryptocurrencies are expected to recover from the previous performance and seek for a new high.
The next story in the sector
Following Bitcoin halving in May and the DeFi liquidity mining in the summer, what is the next event that can inject enthusiasm into the market? We may can look at the following aspects.
The first one is Ethereum. As Eth 2.0 is around the corner, related ecological projects will be released to the public and investors can pay more attention to them. In addition, due to the temporary unavailability of ETH 2.0, the current scale plan on ETH 1.0 is expected to grow as a substitute.
Additionally, Polkadot ecosystem should be noticed. Polkadot, launched by Ethereum co-founder Gavin Wood, is also one of the few projects that can compete with Ethereum. The recent moves of Polkadot allow investors to take notice of its development in advance.
In the end, Dfinity and Filecoin projects are also taking actions this year, and investors can take a look at their recent moves. http://en.icointime.com/post/825207417054.html
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