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DeFi Update: UNI, LINK, & AAVE - DeFi Sector Turns Bullish as It Approaches $100 Billion Market Cap

Analytics

coincodex.com 11 August 2021 12:24, UTC
  
Reading time: ~5 m

It feels like another DeFi bull market might be on the way as the entire sector surges back toward the $100 billion level. Primarily helped by the Bitcoin surge over the past fortnight and further aided by the post-London Ethereum surge, the entire industry is starting to recover as coins start making their way back toward the May 2021 highs.

Let's now take a look at three of DeFi’s top performers this week, including UNI, LINK, and AAVE.

Uniswap price analysis

What has been going on?

UNI is up by an impressive 43% over the past week of trading as the cryptocurrency finally rises back above $30. The cryptocurrency has now cleared both the June and July highs and has switched to a bullish trading conditions. 

UNI had dropped as low as $13.90 during July but managed to rebound from there in the second half of the month. Since rebounding from the support, the cryptocurrency has traded higher inside the formation of an ascending price channel.

The price channel allowed UNI to break a short-term descending trend line, the 20, 50, 100, and 200 day EMA levels, and break above a longer-term ascending trend line. Over the weekend, UNI hit resistance at around $29, provided by a bearish .5 Fib Retracement level. It finally penetrated above this resistance yesterday and would go on to break $30 today.

The break above $30 is quite significant as it signals a higher high above the July highs and shows that the bullish momentum is starting to pick up steam again. A closing candle above $30 would be crucial to confirm that the bulls are really back in control of the market momentum. Worryingly, there are signs of bearish divergence between the RSI and price action on the daily chart, which could indicate a retracement might be on the way.

UNI/USD price short-term prediction: Neutral

The break above $30 has turned UNI bullish in the short term. It would now need to fall beneath $22.16 (50-day EMA & .5 Fib Retracement) to turn neutral. A further drop beneath $20 would turn the market bearish again.

If the sellers push lower, the first support lies at $29. This is followed by $26.50 (.236 Fib Retracement), $25, $24.10 (.382 Fib Retracement), $22.16 (.5 Fib Retracement), and $20.

Where is the resistance toward the upside?

On the other side, the first resistance toward the upside lies at $32.75 (bearish .618 Fib Retracement). This is followed by $34, $35.27 (1.414 Fib Extension), $38.15 (bearish .786 Fib Retracement), and $40.

Above $40, added resistance lies at $41.35 and $44 (ATH).

Chainlink price analysis

What has been going on?

LINK is up by a strong 14% this week and up by a more significant 42% over the past month of trading as the coin reaches $26.12 today. LINK has now created the first higher high since the mid-May market collapse and is showing strong bullish signs. 

It had rebounded from $13.36 earlier in July and surged higher since then to hit the resistance at $25.95 earlier last week. It did break beneath the previous ascending trend line, but the bulls are still in charge of the market momentum after a brief retracement. 

LINK/USD price short term prediction: Neutral

LINK is also considered bullish right now and would have to drop beneath $20 to turn neutral. It would have to continue much further beneath $16 to be in danger of turning bearish in the short term.

If the sellers push lower, the first support lies at $25. This is followed by $23.35 (.236 Fib Retracement), $22.50 (20-day EMA), $21.41 (.382 Fib Retracement), and $20.76 (2019 high).

Where is the resistance toward the upside?

On the other side, the first resistance lies at $28.93 (bearish .382 Fib Retracement). This is followed by 430, $31.25 (1.414 Fib Extension), $32.50, and $33.77 (bearish .5 Fib Retracement). Aditional resistance lies at $35, $38.61 (bearish .618 Fib Retracement), and $40.

AAVE price analysis

What has been going on?

AAVE is up by a solid 32.5% over the past week of trading as the cryptocurrency breaks the $400 level to hit resistance at the upper angle of a price channel. AAVE has been trading inside this price channel since rebounding from around $210 in the second half of July. 

The break above $400 today has signaled that the buyers are also trying to allow the bullish leg higher to progress, although a daily candle close above the level would be required to confirm this.

AAVE/USD price short-term prediction: Bullish

AAVE can be considered bullish, but a daily candle close above $400 would be required for confirmation. It would need to fall beneath $335 (lower angle of the price channel) to turn neutral and would have to continue much further beneath $250 to turn bearish.

If the sellers push lower, the first level of support lies at $400. This is followed by $373, $360, and $335 - the lower angle of the price channel. Beneath the price channel, support lies at $320 (100-day EMA), $311 (.5 Fib Retracement), $300, and $275.

Where is the resistance toward the upside?

On the other side, the first resistance lies at the upper angle of the price channel. Above this, resistance lies at $437 (bearish .5 Fib Retracement), $468 (1.272 Fib Extension), $500 (bearish .618 Fib Retracement), $537 (1.618 Fib Extension), and $560.

Added resistance lies at $591 (bearish .786 Fib Retracement), $600, and $640.


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