and have led a recovery rally in the cryptocurrency market today while surging sharply on Monday.
The central theses
- compound and Aave are up over 70% since June 18th.
- Also syntheticix formed parabolic earlier in the week as its trading volume exploded.
- COMP can $63 and AAVE Reach $94 if buy orders keep piling up.
Compound and Aave have almost doubled in market value over the past four days, hitting critical resistance areas.
Compound, Aave and Synthetix are booming.
Compound appears to have made a local bottom at $26 on June 18th. Since then, the DeFi token has gathered enough bullish momentum to reverse and surge more than 70%. Compound hit a local high of $44.60, which hints at more future gains on the horizon.
The Parabolic Stop and Reverse or “SAR” suggests that Compound’s downtrend has reached exhaustion. Based on the daily chart, the stop and reversal points moved below Compound’s price, indicating that the trend direction has changed from bearish to bullish. Still, the DeFi token still has one more hurdle to clear to validate the optimistic outlook.
The SuperTrend indicator is currently at $47 and is offering strong Resistance. Compound would need to break this level to close the 50-day moving average of $63. Failure to break the $47 resistance level could result in a brief pullback to $34 before resuming the uptrend.
Source: TradingViewAave is also showing initial signs of a bottom after developing a bullish divergence against the RSI on the daily chart. According to the Tom DeMark Sequential indicator, a buy-signal in the form of a sequential 13-candle has appeared, which lends credibility to the optimistic outlook. These technical formations likely contributed to the 74% surge that Aave has posted over the past four days.
Now, credit log AAVE token needs to print a daily close above $76 to signal that it is ready to move higher. Climbing such a key resistance level could give the DeFi token the strength to test the 50-day moving average at $94. However, it is worth noting that if Aave is rejected at the $76 resistance level, it could suffer a downside to $60.
Source: TradingViewCompound and Aave’s bullish momentum comes after Synthetix, a decentralized platform for minting and trading synthetic assets, staged a brief 100 percent rally, rising from a low of $1.57 to a high of $3.16 . The project’s recent price action was likely influenced by a spike in trading volume and the success of a new atomic swap feature introduced with the SIP-120 proposal. The feature helps users execute large-scale trades between different asset classes with minimal slippage.
Source: Crypto News Deutsch