The decentralized finance (DeFi) sector is going through busy days. While many tokens are achieving all-time highs, the amount of assets locked to protocols is also increasing day by day.
The total amount of locked assets has recently increased to over $ 26 billion, according to data from the DeFi Pulse site. On the other hand, CoinGecko data says the market value of the DeFi ecosystem has reached $ 46 billion.
Total locked assets (US dollars) on DeFi. Source: DeFi Pulse
While there are generally these developments in the industry, three DeFi tokens stand out. Cointelegraph analyst Rakesh Upadhyay conducted technical analysis and price evaluation for these three prominent tokens.
CELO / USD – Celo price analysis
Celo (CELO) is a decentralized finance protocol developed to provide a hassle-free money transfer solution by removing the obligation to pay high fees. Currently there are $ 30 million worth of cUSD in circulation and the project is slowly being adopted.
Celo recently announced an awards program. As of January 25, users who maintain a minimum average monthly cUSD balance are awarded via CELO on a “first come, first served basis” basis.
The CELO price rose from $ 1,752 on January 12 to $ 3,922 on January 22 and increased by 123 percent in 10 days. The token is currently forming a bowl formation that looks set to close above $ 4.50.
Daily chart of the CELO / USDT pair. Source: TradingView
The CELO / USD pair is in a new uptrend. High hills and bottoms form one after the other. This indicates a bullish sentiment and traders are buying with every drop. The moving averages (MA) are heading up and the relative strength index (RSI) is in the overbought territory. So the advantage is in the bulls.
The pair doesn’t have any major resistance until it reaches $ 4.30, but the bears won’t give up easily. They will try to stop the current uptrend in the $ 3.60 and $ 3.922 zone. If they succeed, the pair could drop to the 20-day exponential moving average (EMA) ($ 2,528) where buyers are likely to step in.
A strong recovery after the 20-day EMA will continue the uptrend. In this case, the bulls will try to increase the price back to $ 4.30. A future break above the $ 4.30 to $ 4.50 resistance zone and a possible daily close could start the next leg of the uptrend.
This bullish outlook will become invalid if the pair breaks below the 20-day EMA. In such a case, the pair could drop to the 50-day simple moving average (SMA) ($ 1.95).
XVS / USD – Venus Protocol price analysis
The decentralized finance (DeFi) sector remains strong even as the leading cryptocurrencies are experiencing sharp corrections. This shows users’ trust in DeFi protocols and projects deliver better returns compared to altcoin options.
Venus Protocol (XVS) only works on Binance Smart Chain. As interest in the protocol has increased recently, the total amount of locked assets has jumped to $ 400 million.
XVS price surged to its highest level of $ 12.9 after reaching an intraday low of $ 3,945 on Jan.18. In a short time, it achieved a 227 percent rally. The momentum also gained momentum after the bulls pushed the price above the overall resistance zone of $ 5 to $ 6 on January 23.
Daily chart of XVS / USDT pair. Source: TradingView
Profit took on January 25, but the bulls increased their purchases during the decline. They raised the price above $ 9.89 to continue the uptrend. The prospect of moving to double digits seems to have enthusiastic bulls who continued to buy at higher levels.
The XVS / USD pair could rise to $ 15 and then to $ 20. However, the recent rally pushed the relative strength index (RSI) to the top of the overbought zone. Consequently, the risk of correction or horizontal travel increased.
If the price drops from the current levels, it could likely find support at $ 10. A strong recovery from this level will indicate that previous resistance has returned to support and the bulls will then try to continue the uptrend. On the contrary, if the price drops below $ 10, the correction can deepen to $ 8.
FTM / USD – FantomFinance technical analysis
FantomFinance (FTM); A protocol that plans to bring new and innovative synthetic products to the market, taking advantage of the growing popularity of the synthetic and decentralized derivatives trade.
The FTM price rose from an intraday low of $ 0.0241 to $ 0.0678 on January 22, and a rally of 181 percent was achieved within five days. The bulls pushed the price above the $ 0.05665 resistance on January 24 and 25, but they were unable to overcome higher levels.
Daily chart of FTM / USDT parity. Source: TradingView
The bears tried to enter the correction period on January 25, but the bulls were stronger. They pushed the price aggressively to an all-time high. However, the sharp rise in the past few days has pushed the relative strength index (RSI) deep into the overbought zone, which could begin a retracement or sideways course.
If the price drops from the current levels but returns from the $ 0.05665 support, it will be revealed that the previous resistance is returning to the support. The FTM / USD pair can start the next leg of the uptrend that can reach $ 0.0850.
Conversely, if the bears pull the price below $ 0.05665, the pair could drop to $ 0.05 and then to $ 0.045. A break below this support will signal a change in trend.
The views and comments expressed here are only of the analyst. It may not reflect Cointelegraph’s views. Every investment and trading transaction involves risk. When making your decision, you should do your own research.