What’s Next for These 3 DeFi Altcoins That Succeed in 2020?
Aave (LEND), Ren (REN) and SwissBorg (CHSB) tokens have made significant increases recently. Nevertheless, technical indicators show that caution is required against these DeFi tokens.
Investors Launched After 1,100% Bull Rally
Aave has had an impressive bull rally since the beginning of the year. As interest has returned to the DeFi space, the buying pressure behind the decentralized peer-to-peer lending protocol has seen a tremendous price increase.
Later, the price of the protocol token quickly rose about 1,100% and rose from a low level of $ 0.015 to $ 0.17.Despite the increasing demand for this cryptocurrency, the TD ranked indicator seems to have reached a point of exhaustion. This technical index currently offers a sales signal on both the 3-day and 1-day chart. Decline formations developed in the form of a green nine candlestick within both time periods.The increase in sales pressure behind LEND can help confirm the pessimistic outlook.If this happens, TD setup predicts one to four candlestick fixes before continuing this altcoin bullish trend.
IntoTheBlock’s “Money In / Out of the Price Environment” (IOMAP) model supports this downward view as it shows a significant supply barrier in front of Aave . Indeed, about 42,000 addresses had previously bought 37.6 million LEND between $ 0.135 and $ 0.16.
This is a critical level of resistance because many of these addresses will try to break in their positions and absorb any upward pressure.
IOMAP shows that the most important support level is around $ 0.12.Here, about 400 addresses previously received a total of 183.7 million LENDs. This supply barrier can serve as a strong support.Owners in this price range can try to stay profitable in their long positions. They can buy more of this DeFi token to prevent prices from falling below this level.
120 Million Inert REN in Motion
Following the market meltdown in March, Ren showed an uptrend that saw its price rise over 500%.Taurus momentum almost allowed to retest $ 0.155, which it reached in August 2009. Now, this DeFi token seems to form a double top pattern on the 1-week chart.
According to Investopedia, this technical formation is considered to be an extremely low reversal pattern.The second rounded top now appears slightly below the first top, but indicates that the trend has been exhausted and the possibility of a sharp retreat is high.
In addition, Santiment’s Token Age Consumed index has recorded a significant increase in REN tokens that have changed hands in the past few hours . This metric measures how many cryptocurrencies have been moved between addresses recently and is multiplied by the number of days since they last moved.Santiment may indicate sudden increases in the relevant index, changes in the behavior of some long-term owners. These increases tend to precede the increased volatility for the price of a coin. ”
For the last time, the date when many old REN tokens changed hands was June 19.During this time, about 12 million idle REN moved between different addresses. Later, the price of this cryptocurrency dropped 13%.Now about 120 million idle REN tokens are on the move, history can repeat itself. This may indicate that there is an impulse downward on the horizon of the DeFi token.
Based on the Fibonacci retracement indicator, the increase in sales orders behind REN has fallen to the level of 23.6% or 38.2% Fib.Support zones for this DeFi token are $ 0.124 and $ 0.105, respectively.
However, the recent high level above $ 0.154 will jeopardize the bearish outlook. If this were the case, REN’s price would probably explode and reach all-time highs.
SwissBorg Raised to All-Time High
SwissBorg is trading at its all-time highs after the 1.760% price increase it has experienced since the beginning of 2020.This is a clear sign of excitement among market participants around DeFi projects. However, as a wise person says, “Everything that rises should go down.”As a matter of fact, the TD rank indicator presented two sales signals in the last few days on the 3-day chart of CHSB. There are drop patterns in the form of 13 row candlesticks and nine green candlesticks.
Combined, these fall formations can be extremely effective in predicting market tops.If they are to be verified by an increase in sales pressure on the back of this DeFi token, it would make sense to wait for one to four candlestick fixes or a new downward countdown to begin.It will all depend on whether the bulls see the final price action as a sign to make a profit.
In the case of a fix, IntoTheBlock’s IOMAP model reveals that three critical support walls can prevent SwissBorg from falling steeper.The first and most important support lies between $ 0.138 and $ 0.142. Among these price points, 207 addresses received 13.73 million CHSB. Overcoming this supply barrier can see SwissBorg falling to the next support level of $ 0.13.161 addresses here bought a total of 6.4 million CHSB. If these support barriers do not apply, the next level to follow is between $ 0.12 and $ 0.125, and 59 addresses had previously received 7.5 million CHSB.
DeFi will bring a lot to Ethereum
With all the hype around DeFi, Skew believes that Ethereum will benefit most in the long run.The crypto derivatives analysis firm believes that stabilcoins and DeFi tokens running on Ethereum are more “sustainable” products and market-ready than 2017 ICOs.On the same line, TradeBlock research chairman John Todaro states that as the popularity of DeFi platforms continues to grow, Ethereum will eventually make significant price increases.