Will SNX and UNI Continue Pumping Alongside the DeFi Index?
The prices of Uniswap (UNI) and Synthetix (SNX) tokens have broken out from their respective resistance levels and validated them as support afterward.
Along with the DeFi index, UNI and SNX are expected to continue moving upwards, at least in the short-term.
The SNX price has been moving upwards since it reached an all-time low price of $2.47 on Nov. 7. SNX broke out from the $3.60 resistance area shortly afterward, only to return and validate it as support in the form of a long lower wick on Nov. 26.
SNX has been increasing since and has currently reached the next resistance area at $5.40. A breakout above it could take the price all the way to $7.20.
Technical indicators in the daily time-frame are bullish and support the possibility that the price will break out.
Cryptocurrency trader @Damskotrades outlined a UNI chart which shows the price breaking out above the current resistance area and increasing by at least 28%.
Similarly, the UNI price has been increasing since it reached an all-time low of $1.75 on Nov. 5.
UNI broke out above the $3.50 resistance area on Nov. 12 and has been trading above the area since, with the exception of a slight deviation below on Nov. 26.
However, UNI created a bullish candlestick with a long lower wick on Dec. 2 and has seemingly begun an upward movement, which is also supported by the RSI and MACD.
Therefore, UNI is expected to continue increasing towards the next resistance area at $5.20.
The DeFi index has also been moving upwards since it reached a low on Nov. 4. It followed this low up with a breakout from a descending resistance line two days later. On Nov. 24, it reached a high of $765.20 before dropping.
After the drop, the index bounced at the 0.618 Fib retracement level and created a long lower wick combined with a hidden bullish divergence in the daily RSI (red dashed line).
However, there is now a potential bearish divergence developing, which will likely be created alongside a double top pattern.
Therefore, we cannot yet determine if the index will move above $765 or create a double top and fall afterward.
Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto
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