The rise in the decentralized finance (DeFi) market continues. As recently reported, the total market value of the ecosystem reached 65 billion dollars.
As of the weekend, the movements of the token belonging to the 3 DeFi protocols are remarkable. Cointelegraph analyst Rakesh Upadhyay conducted a price evaluation for the featured Universal Market Access (UMA), SwissBorg (CHSB) and Siacoin (SC).
UMA / USD – Universal Market Access teknik analiz
The UMA rose from an intraday low of $ 11,234 on February 2 to $ 43,998 on February 4. An increase of 291 percent was recorded in three days. This sharp rally pushed the relative strength index (RSI) deep into the overbought zone.
Daily chart of UMA / USDT parity. Source: TradingView
The long wick in the candlestick observed on February 4th indicates that traders are taking profit after the rise. The downside is that the 38.2% Fibonacci retracement level ($ 31,482), which is expected to serve as support the next day, is also broken.
If the UMA / USD pair bounces up from the 50% Fibonacci retracement level observed at $ 27,616, it will be revealed that traders are buying on dips and not expecting a deeper decline. The bulls will then try to continue the upward movement by pushing the price above $ 43,998. If they are successful, the pair could rise to $ 62.
Contrary to this assumption, if the bears pull the price below $ 27,616, it could deepen to $ 23.75, where the 61.8% Fibonacci retracement level is. Such a move will show that the bullish momentum is weakening.
CHSB / USD – SwissBorg price analysis
CHSB has had a strong uptrend in the past week. While the lowest intraday low was calculated with $ 0.289898 on January 26, it rose to $ 1.008969 on February 4. In this short time, the price increased by 248 percent.
Daily chart of the CHSB / USD pair. Source: TradingView
However, the recent rally pushed the relative strength index (RSI) deep into the overbought zone. In other words, the current price action is open to a small correction or consolidation.
The long wick on the February 4 candlestick indicates that traders are taking profit at the psychological resistance level of $ 1. Initial support in the negative zone appears at $ 0.734282, calculated at the 38.2% Fibonacci retracement level. This price was tested on February 5th, but the day-end closing occurred higher.
If the bulls continue to defend this support, the CHSB / USD pair may continue its upward trend. If there is a break above $ 1.008969 in the next step, the next leg of the upward move could begin, which could reach $ 1.15 and then $ 1.4.
On the other hand, if the bears cut the price below $ 0.734284, the decline could extend to the 20-day exponential moving average ($ 0.576306). Subsequently, horizontal movement is possible for several.
SC/USD – Siacoin teknik analiz
The SC price was traded at $ 0.004108 on January 28, while it rose 142 percent in two days to $ 0.009950 on January 29. Following this sharp upward move, the token witnessed a correction where it found support at $ 0.006340, where the 61.8% Fibonacci retracement level was calculated.
Daily chart of SC / USDT parity. Source: TradingView
The bulls are currently trying to maintain their uptrend. The SC / USD parity declined from $ 0.009709 on February 3. This suggests that bears are aggressively defending overall resistance.
If the bulls don’t allow the price to drop below $ 0.007718, the pair can try again to break the overall resistance. If successful, the pair could rise to $ 0.012 and then to $ 0.015.
On the other hand, if the price drops below $ 0.007718, the pair could fall to the 20-day exponential moving average (EMA) ($ 0.006811). An upward recovery from this support could generate several days of lateral movement. A break below the 20-EMA will cause the advantage to pass to bears.
The opinions and comments conveyed 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.