While leading altcoin options, especially Bitcoin (BTC), attract investors’ attention, there are decentralized finance (DeFi) tokens that are overlooked and have high potential.
Noticeable movements were observed in the prices of several lesser known DeFi tokens. Overlooked tokens are particularly important as good investors regularly monitor the performance of their assets. They remove low performers from their portfolios and include new ones.
In this context, Cointelegraph analyst Rakesh Upadhyay, who has recently evaluated three DeFi tokens that have attracted attention with their price movements, shared technical analysis.
LUNA/USD – Terra technical analysis
The LUNA token of the Terra protocol was traded at just $ 0.63 on December 29, 2020. Since then, LUNA price has risen to the highest level of $ 12,124. In this two-month period, a gain of 1.821 percent was achieved.
LUNA price ended its trip between $ 5 and $ 8.50 as of March 8. The price accelerated to above $ 12, gaining momentum. As evidenced by the long wick on the candlestick, investors started taking profits above $ 12 and the price declined.
Daily chart of the LUNA / USDT pair. Source: TradingView
The relative strength index (RSI), which climbed up to 80 after the acceleration, has now declined to 74. This indicator reveals that the LUNA / USD pair is overbought in the short term. Consequently, the upcoming period may be the scene of a consolidation or correction.
If the decline deepens, the first level to look at will be $ 8.5. If the bulls tighten purchases in this area and pushes the price up, the uptrend can continue and this time the target is $ 15.5.
But if the bears prevail and the price drops below $ 8.5, it will be important that the pair does not fall far below the 20-day exponential moving average (EMA) at $ 8.05 this time. It is very important to defend this region for the upward trend to continue.
Going below the 20-EMA level could result in a decline to the 50-day simple moving average (SMA) calculated at $ 5.1.
VET / USD – VeChain price analysis
The VeChain Token (VET) price entered the new year at $ 0.018 and rose to $ 0.0675 on March 9. During this period, the value of the token increased by 275 percent.
Although the bulls tried to push the price up, profit gains began to be observed since the peak on March 9. On March 11, the not-so-solid 0.06 support was tested for a short time.
Daily chart of VET / USDT parity. Source: TradingView
If the bulls can keep the price above the $ 0.06 breakout level, the rally could reach $ 0.085 and then $ 0.1. Rising moving averages (MA) and the relative strength index (RSI) in the overbought zone show that the bulls are in the steering.
Contrary to this assumption, if the bears pull the price below $ 0.06, the VET / USD pair could drop to the 20-day exponential moving average (EMA) ($ 0.0524). This is a very important support. If it works, it will show that the bulls continue to buy in the bearish and pave the way for a strong recovery.
On the other hand, if the bears pull the price below the 20-EMA, the pair will seek support from the 50-day simple moving average (SMA) ($ 0.0419) this time around. A break below this support may indicate a change in trend.
HBAR / USD – Hedera Hashgraph teknik analiz
Hedera Hashgraph (HBAR) price traded at $ 0.100640 on January 21, while it peaked at $ 0.278888 as of March 11. The increase in this period was calculated as 177 percent.
Both moving averages of HBAR price, which is in a strong uptrend, are rising. The relative strength index (RSI) surpasses 81, near the top of the overbought level. While there appears to be a clear advantage for the bulls, it may also signal that a correction is imminent.
HBAR / USDT daily chart. Source: TradingView
Although the long wick formed in the candlestick on March 10 indicates high profit taking, this time a bearish purchase was made with the bulls’ move and a long tail was formed. The second long wick, as of March 11, increases the likelihood of a decline.
Since there is a very rapid upward trend and no clear support has yet been formed, the first level to be considered in a possible correction will be the 20-day exponential moving average (EMA) ($ 0.16070).
If there is an upward jump after a correction towards the 20-EMA zone, it will be revealed that there is heavy buying in price decreases. In this case, the bulls will try to maintain the uptrend and push the price above the next strong resistance of $ 0.25. After that, the first hurdle may be psychological resistance at $ 0.3.
Contrary to this assumption, if the price fails to hold onto the 20-EMA level and falls, the importance of the 50-day simple moving average (SMA) ($ 0.12406) will increase. Losing both moving averages will reverse the trend and increase the likelihood of a decline to $ 0.08.
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