The bearish tide in the crypto market does not end, and the tokens of major DeFi do not escape from it.
Today the value locked in decentralized protocols is $64,610 million, losing almost 50% from the all-time high of $128,000 million.
In the last 24 hours the loss of value blocked between the main protocols hovers between 5% and 10%.
The top 10 DeFi is led by Curve, with a locked value of $ 7.4 billion. This is followed by Aave V2 and Compound with $6.7 billion and $ 6.5 billion respectively in locked value.
Technical analysis of major DeFi tokens
Token Curve
The largest DeFi token is trading at the time of this writing at $1.46, accumulating a slight gain of 1% in the last 24 hours.
With a market capitalization of $1.168 billion, Curve DAO is ranked 92nd in CoinMarketCap’s ranking.
From the daily chart of the price of this token we observe a clear downtrend in the short term, currently developing a momentum that could easily generate greater losses in the near future.
However, the possibility of a double deck over the area between $1.05 and $1.32, may generate some hopes of resumption of the uptrend that have brought the DeFi ecosystem during the last months.
At the moment the odds are on the bearish side for the short term. To think of a change of direction, the resistance at $1.66 must be crossed.
Token AAVE
The native token of the decentralized lending platform AAVE is trading at $178.27, accumulating a loss of 4.56% in the last 24 hours.
Thanks to a capitalization of $2.338 billion it ranks 32nd in the ranking of the largest cryptocurrencies.
Unlike Compound, Aave’s token has been significantly more affected by crypto market losses, losing support after support without major difficulty.
The short-term trend is undoubtedly bearish, which tells us that the odds are on the side of a continuation of losses, which could easily lead the price to support at $160.32.
In this case to think about purchases resistance at $211.37 should break, which would give way to a short-term trend transition.
Token Compound
The COMP token is currently trading at $216.60, and accumulates a loss of 2.46% in the last 24 hours. With a capitalization of $1.163 billion it ranks 61st in CoinMarketCap’s ranking.
Like almost the entire crypto market, the Compound token trend is bearish in the short term.
Today the price is making support at $219.69, but the bearish tilt could soon put pressure and bring COMP to $ 177.37.
To think of short-term purchases, resistance at $260.25 must be crossed.
While some consider that the bull market is over and the losses we are seeing are a consequence of it, others (including me) are in favour of the fall being nothing more than a healthy correction, and that it could soon give way to a new big upward momentum.
The analysis of the current market situation tells me that even though we can see larger losses in the short term among DeFi tokens, the fall is coming to an end, so it is worth being cautious when betting against the long-term bullish direction.
All our publications are informative, so in no case should they be followed as investment advice.
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