Over the past weekend, the crypto market faced yet another turbulence as Bitcoin prices plunged by $2,000, leaving the DeFi sector trembling. The big headlines emerged on Sunday as the founder of Uniswap-inspired SushiSwap, Chef Nomi, announced his own cashout plan. Some skeptics fear the move was an ‘exit-scam’ maneuver despite the Chef claiming that he will continue working on the project.
This suspicious move has caused panic in the DeFi sector as speculators dumped their tokens and withdrew their assets. We can see the significant decrease in the total locked value (TVL) from a height of $9 billion down to $8 billion over the past week, which was the biggest outflow of funds we have witnessed since DeFi’s inception.
There is no doubt that the DeFi bubble is now wobbling but it remains to be seen if the hype can still continue to push itself forward, or should the bubble pop soon. Either way, the case of SushiSwap might be a friendly reminder for investors and speculators to be more cautious about their investment and all insane parties like the Sushiswap one must eventually come to an end.
Bitcoin Technical Analysis
Losing $10,500 which was once a major resistance level, and was expected by many to become a support of the same strength, hardly bodes well for the crypto market. Bitcoin (BTC) also broke below the green price support trend line, and the EMAs posing for a Death Cross are not much of a bullish signal.
However, the base of the July breakout at $9,900 saved the day as there are buyers stepping in to prevent BTC from falling lower. This week, BTC might remain in a trading range between $9,900 to $10,500 as price consolidation occurs. It would be wise to wait for Bitcoin to reclaim the $10,500 and stand above all three EMAs for buy-in opportunities.
Rumor has it that smart money and investors are eyeing next support at $8,800, which was once a multi-month support when BTC trended sideways from April to July.
Ethereum Technical Analysis
Breaking below all three EMAs of 9, 25, and 50 days has caused Ethereum (ETH) to lose its momentum. Nevertheless, ETH is still ranging in an uptrend channel. The lowest part of the channel is at $280 and breaking below this would send ETH back into a bear market.
In the short term, ETH has to reclaim $382 as soon as possible to be able to flip back above all EMAs. Doing so will confirm that the bull run for ETH is still intact.
The SCN30 Index continues to fall lower since its all-time-high at 308.85 points. The weekend has been cruel for the index as due to the free-fall to 213.92 points, the largest drop since its creation.
Binance Coin (BNB) on the other hand, outperformed the market as many new products such as Binance Smart Chain and Liquid Swap were rolled out last week, boosting Binance’s already robust ecosystem of crypto-related offerings. BNB risen 3 positions in the SCN30 and now sitting in rank number five.
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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