The decentralized finance (DeFi) sector is breaking record after record. As the total market value of the ecosystem climbs to an all-time high, the amount of assets locked in protocols continues to increase.
As reported by Cointelegraph, the total amount of locked assets in the decentralized finance ecosystem has exceeded $ 30 billion. On the other hand, the total market value of DeFi protocols has gone beyond the secret of $ 55 billion.
While these developments are taking place in the ecosystem in general, three DeFi tokens stand out with their recent price movements. Cointelegraph analyst Rakesh Upadhyay conducted technical analysis and price evaluation for these three prominent tokens.
BAND/USD – Band Protocol teknik analiz
The DeFi industry has exploded in the past few months. Decentralized, fast and reliable data sources have a big share behind the success of the protocols. Band protocol also produces services in this field. Cross-chain data oracle made several partnership announcements recently, which gradually increased its market share.
The price of BAND traded at $ 7,1532 on January 22, and rose to $ 12,949 the next day. The increase in this short period was calculated as 81 percent. Before this move, the price had remained in the range of $ 7 to $ 11.5 for several days.
Daily chart of the BAND / USDT pair. Source: TradingView
The bulls pushed the price above the aforementioned aisle on Tuesday, February 2nd, but the long wick on the day’s candlestick chart shows the bears are selling aggressively higher. However, as of February 3, the price was again above this range and the BAND / USD parity was at 11.9081 at the time of this article.
After the developments in the price, the 20-day exponential moving average (EMA) ($ 9.28) started to rise. Likewise, the relative strength index (RSI) reached the positive region. So as of now, upward movement is more likely.
If the bulls manage to keep the price above $ 11.5, the target for the BAND / USD pair is 16 and then $ 17.78. This zone can act as a tough resistance, but if the bulls can push the price higher, the momentum will go up.
Contrary to this assumption, if the bears successfully defend the $ 11.5 to $ 12,949 resistance zone, the pair will again continue its movement inside the corridor shown in dashed lines on the chart.
LRC / USD – Loopring price analysis
Loopring, which brings innovation to the transaction fees paid when trading on decentralized exchanges, offers solutions with second layer scaling. The protocol recently updated the LRC tokenomics model and offered new fee models to its participants.
LRC, the token of the protocol, which attracted attention with its innovations, rose to $ 0.57618 on January 31 from its lowest level of $ 0.33651 on January 22. This rally increased by 71 percent within a few days. The rising moving averages (MA) and the relative strength index (RSI) in the positive zone show that the market is currently controlled by the bulls.
Daily chart of LRC / USDT pair. Source: TradingView
The up move is currently facing resistance near $ 0.55. The LRC / USD pair could drop to the 20-day exponential moving average (EMA) ($ 0.44563) if it fails to break this resistance. This is an important level to be aware of, as the pair received support from the 20-EMA level in all three corrections indicated by red ellipses on the chart.
If the pair manages to move up from the 20-day EMA level, the bulls will move to push the price above $ 0.62167. If that succeeds, the pair could climb up to $ 0.71773 and then $ 0.78.
On the other hand, if the bears prevail and keep the price below the 20-day exponential moving average (EMA), the above bullish target will become invalid. Such a move will show that the bulls are no longer buying during dips. In this case, a gradual decline to $ 0.35 and then the 50-day simple moving average (SMA) ($ 0.32623) can be expected.
CREAM/USD – Cream teknik analiz
While end-to-end lending protocols already exist in the crypto space, Cream takes it a step further and creates a protocol-to-protocol lending mechanism.
The platform’s CREAM token was traded at $ 119.35 on Jan. 22, and hit a 168 percent rally, reaching an intraday high of $ 319.9 on Feb.2. The long wick on the candlestick of the same day indicates aggressively high profit taking.
Daily chart of CREAM / USDT parity. Source: TradingView
If the bulls does not allow the price to drop below the 38.2% Fibonacci retracement level traced at $ 251.65, it will be revealed that purchases increase as the price drops. The rising 20-day exponential moving average (EMA) ($ 189.7) and the relative strength index (RSI) near the overbought zone give the bulls an advantage.
If the bulls can push the price above $ 294.8 and hold it in that zone, the CREAM / USD pair could rise to $ 362 and then $ 430.
If the opposite happens and the bears pull the price below $ 251.65, the pair could drop to $ 209.45, where the 61.8% Fibonacci retracement level is calculated this time.
The opinions and comments expressed here are only analyst belongs. It may not reflect Cointelegraph’s views. Every investment and trading transaction involves risk. When making your decision, you should do your own research.