Bitcoin (BTC) and other large altcoins are either stuck in range or seeing a correction. However, that is not the case with the entire crypto space because few tokens have been outperforming large cryptocurrencies by a considerable amount.
In a world where yields have plummeted to insignificant levels, the DeFi ecosystem has attracted investor attention. Data from Dune Analytics shows that the number of unique Ethereum addresses participating in various DeFi protocols has increased from about 91,000 to over 1 million in a year.
A few analysts have warned that while these numbers look encouraging, the actual number of unique users may be much smaller, as many DeFi users may be using multiple addresses. Despite this possibility, the fact that the growth in DeFi has been phenomenal cannot be denied.
Compound, DeFi’s fourth largest platform by total locked-in dollar value, has come back strong since Nov. 26 when $ 89 million worth of collateral was liquidated when Dai’s price rose to $ 1.3 on Coinbase and Uniswap. These price feeders are used by Compound.
Although the Compound protocol worked as it should, its reliance on only a few data points for oracles came under criticism. As this was a one-off event, the price has increased in the hopes of finding a solution to avoid such liquidations in the future.
Waves is another ticket that has made a strong upside down rush. The team behind the Waves protocol recently announced a partnership with OKExChain, a public blockchain developed by digital asset exchange OKEx, to build decentralized applications and developer-friendly tools.
Wave Gravity protocol will enable OKExChain to connect and transfer assets across multiple blockchain. Assets in the Waves ecosystem can be deployed on decentralized exchanges built using OKExChain. Developers and traders from both ecosystems can hold, exchange and use tokens issued on the Waves and OKExChain protocol.
The gaming industry and associated crypto tokens have also boomed further in 2020 as people are forced to stay home because of the coronavirus pandemic. Growth in this sector also catalyzed a strong movement among the irrevocable tokens, or NFTs, used in many blockchain-based games.
One of the most popular games based on blockchain and NFT in 2020 is Axie Infinity. In the game, players are given the task of building a digital landscape and battling their pets against other players, similar to Pokémon and Tamagotchi. The increased downloads and over 4,500 active participants have also increased demand for its Axie Infinity Shards (AXS) ticket.
While the fundamentals of each company have been positive, is the technical project further upside down?
Let’s analyze the charts of these three tickets to find out.
COMP / USD
COMP has increased from an intraday minimum at $ 100.32 on December 1 to an intraday peak at $ 179.48 at press time, a 78% rally in a week. The 20-day exponential moving average ($ 127) has turned up, and the relative strength index (RSI) has entered the overbought zone, which suggests bulls are in control.
Typically, over-thought readings on the RSI are considered bullish, especially when coming out of an underlying formation because it shows aggressive buy-in from traders.
The COMP / USD pair could face resistance in the $ 187 to $ 200 zone. However, if the price does not yield much ground, it will suggest that traders are not urgently ordering profits on their jobs, thus expect higher levels in the future.
If the bulls can drive the price above $ 200, the pair could rise to $ 260 where the bears are likely to withstand stiff. This bullish view will be invalid if the price turns down and plummets below $ 140.
WAVES / USD
WAVES has risen from a minimum intraday at $ 6.20 on December 1 to an intraday peak at $ 9.32 on December 7. This is a rally of about 50% in the past seven days, and the altcoin has been in strong progress since inception out on October 7.
The WAVES / USD pair is currently facing resistance near the psychological level of $ 10. The first support on the downside is the 38.2% Fibonacci score level at $ 7.8833, the next being the 20-day EMA for $ 7.
If the price bounces at either level, it will suggest traders build up on dips. The bulls will then try to push the price above the overhead resistance. If successful, the next phase of the uptrend could start with the first target at $ 13.40 and then $ 15.
However, the negative difference on the RSI suggests that the momentum is weakening. If the price drops below the 20-day EMA, it will suggest that the bulls are no longer buying on dips, indicating a change in sentiment. This could lead to a collapse of the next critical support at $ 5.559.
AXS / USD
AXS Axie Infinity has increased from a minimum intraday at $ 0.40 on December 1 to an intraday peak at $ 0.63889 at press time today. The 59% rally in the past week shows the trend favors the bulls.
The bears are likely to defend the overhead resistance at $ 0.686, but if the bulls can keep the price above the $ 0.55 support, it will indicate strength. Such a step will increase the possibility of breaking above the overhead resistance.
The first upside target is $ 0.90, then the AXS / USD pair could rally to the psychological figure at $ 1.
Contrary to this assumption, if the bears sink the price below $ 0.55, the 20-day EMA may be reduced ($ 0.46). A cut below this level will indicate that the bulls have lost their grip. The trend will favor the bears if the price slips below $ 0.31.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.