In recent months, the bitcoin markets have been focusing on Decentralized Finance (DeFi) and decentralized exchanges. Uniswap is one of the most popular decentralized exchanges, and its token, UNI, has recently been listed on Coinbase Pro and Binance.
As UNI tokens were airdropped, most users received them for free. The huge buzz around Defi, on the other hand, led other projects to plummet in recent weeks.
Sushiswap (SUSHI) and Curve DAO Token are two of the dropdowns (CRV). These two coins have lost 75% of their worth in just two weeks.
Will Uniswap be the next company to experience such a drastic drop?
Curve and Sushiswap were the biggest losses in the previous quarter. Profits and hypes come and go in the cryptocurrency markets, and the DeFi market is no exception. The bulk of people on Uniswap focused on produce farming in recent weeks, but suddenly the negative is creeping in.
Sushiswap’s chart is destructive and bearish, as key support levels lost. They can still tell a lot from a technological standpoint in this regard. The $2-2.20 green support region repeatedly hit, with persistent lower highs near the red lines. A descending triangle is a name given to such a pattern.
Sushiswap’s price resumed its downward trend when the support area broke down after many tests. The price fell to a final point of support between $1.10 and $1.30 as a result of this decline. Is this, however, a specific entry point now?
These initiatives are significantly riskier than market cap heavyweights like Bitcoin since cryptocurrency marketplaces are generally dangerous (BTC). Sushiswap’s decision to maintain support here, though, could confirm a possible entry point.
Curve DAO Token is in the process of determining its pricing
Curve DAO Token’s 4-hour chart is now in price discovery mode, as the $1.75 support level smashed, as did Sushiswap’s essential support levels. The Fibonacci extension tool, which provides a probable level of support at $1-1.15, can define these levels, just as it is for discovery in up trending markets.
The second item of interest would be a recovery of the $1.34 level, which would almost certainly lead to a $1.75-1.85 area test, which also tested on Aug. 24, as shown in the following chart.
Despite the chart showing a definite breakdown below the $2.78 support region, the level regained in the following days. After that, a warranted test of the next resistance zone at $4-4.25.
As a result, the same situation could play out again, with a potential surge towards $2.30 if that level becomes support. Reclaiming past support levels is a critical trigger for bullish momentum to continue. A possible return to the prior range and $1.75 support becomes more conceivable in such a case.
If this happens, the price of Curve DAO Token could overshoot to the upper portion of the range, where the next potential target zones are $2.16-2.30.
According to the Fibonacci extension tool, if $1.33 is not verified as a support zone, the next area of focus should be $1-1.10.
Lastly, taking holdings in new coins with a lot of hype should have caution because sentiment can shift quickly, resulting in significant price volatility. In uptrends, markets can be irrational, just as they can be in downtrends (as the market has shown in recent months).
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