Over the past week, the cryptocurrency market has been trending downwards with Altcoins experiencing sell-offs, especially DeFi tokens, many of which have plunged to new swing lows.
Nevertheless, not all is lost, as leading decentralized exchange (DEX) Uniswap announced its native governance token, UNI just last week. The DEX surged to the top of the DeFi rankings list with a Total Value Locked (TVL) amount of over $1.9 billion within a few days of its launch. Trying to catch on the hype initiated by Uniswap, many centralized exchanges such as Binance and Coinbase Pro were quick on their feet and listed the UNI token on their platforms in a matter of hours after the token went live.
Uniswap also distributed its proprietary UNI tokens via airdrop campaigns, rewarding past users with 400 UNIs, fueling the hype in the market even further.
Despite the bearish outlook of the crypto market across all sectors, with even Bitcoin now struggling to reclaim the $11,000 territory, UNI’s unpredictable price action might be just what the traders need to send the hype train rolling once again.
DeFi was seen by many as a bubble ready to pop. In reality, while the bubble is actually forming, not many people would be aware of it. They will likely fail to see until it bursts in front of them. Nonetheless, trading DeFi governance tokens on the secondary market remains risky as there are players who obtain these tokens at a relatively cheap cost, who can decide to dump them in the market at any price.
Bitcoin (BTC) Technical Analysis
Bitcoin (BTC) in a daily time frame looks promising as the price has now recovered above all three EMAs of 9, 25, and 50 days. It is wise to keep an eye on these EMAs for any Golden or Death cross that might start forming soon.
The resistance Bitcoin needs to reclaim is at $11,500, a level it touched briefly before selling pressure kicked in and prices were brought lower once again. Breaking above said level would bring BTC back to $12,000 and $12,500 respectively. The price is now trending on a speed line in yellow which can be considered as support or at $10,500 which has been acting as resistance in the past week.
Ethereum (ETH) Technical Analysis
On the daily time frame, Ethereum (ETH) also stands on all three EMAs while the crucial resistance for this week lies at $400. Breaking above said level could bring us higher to the next Fibonacci’s resistance at $420.
The support for ETH would be at $352, and if the level fails, expect to see more buyers step in at the $310 level. In any case, the rising trend line in green should not be breached as it reflects the macro uptrend of ETH.
Disclaimer: This analysis is the view of the author’s alone, and does not in any way represent trading advice. all traders should trade at their own risk.
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