There has been an unavoidable decline in DeFi ecosystems for a while. If we make an evaluation considering the decrease of the first 3 assets as market value in the ecosystem rankings, the situation may be stability in the decreases.
However, situations may change if the price pressure of the Bulls takes action again for bullishness.
Having caught new ATHs in a row last Friday, LINK had to go for a correction. Although the asset, which rose almost to the $ 27 band, showed a 6-hour holding movement, as can be seen in the charts, both sell signals and the decreases in investors’ demands forced the retreat. This situation, which we can call normal, resulted in a decrease of 6.1% during the day and 3.6% in total on a weekly basis.
Signals of the continuation of an uptrend in Bollinger data were thought after ATH. However, the asset, which could not find the expected support from its investors, could not prevent the withdrawal because profitability was involved. As of Sunday (February 7), there is a noticeable decrease in the MACD and CMF indicators. A situation that could be negative in trends and may support the downtrend. However, strong buy signals may herald a rise again for the next week. For the time being, it’s hard to say the LINK uptrend is coming. It would be wrong to say how long the withdrawal will take.
The entity in the channel where it enters a downward trend is dragged towards the lower channel plane. The asset, which saw an instant decrease of $ 22.8, seems to be unable to hold on to the support points of $ 24.7 and $ 24. The likelihood of a rapid drift to the channel bottom could also bring a rapid drop towards $ 22 and then $ 20.6. For this, the appropriate interval should be determined considering the next 24 hours. The LINK bulls pushing the $ 25.4 resistance level and the holding trend could bring the $ 30.2 level at first glance and then the $ 34 level.
Like LINK, Uniswap (UNI) had an ATH last Friday. As a matter of fact, he himself was doomed to fall. In the RSI data, it is seen that the sell order signals are bringing with it. The asset, which cannot hold on to the $ 22.5 ATH level, has now declined to $ 17.0.
For a while, the RSI has been hovering below the neutral 50 band. It can be said that the asset, which is faced with oversolding up to 30 basis points from time to time, is an effective parameter for RSI. The asset, which tested the $ 17.6 support level, is currently experiencing a partial rise, but has a resistance point of $ 19.55. After ATH, the issue of acceleration does not seem to be on the agenda this week. Although different indicators give a buy signal, it may not be healthy to trade this week. It will be necessary to pay attention to the support level of $ 17.20. Retesting the support point’s gold can bring the continuation of the decline.
Another ATH living DeFi ecosystem is AAVE. The AAVE protocol, which exceeded $ 540, experienced a pullback together with high sell orders after an instant rise. The asset fell below the $ 463 support point after the incident on Friday, and witnessed $ 440 levels. Yesterday at noon, it started moving again and caught the 500 dollar band. After the sudden rise, the declining momentum was repeated.
AAVE is experiencing a retracement after ATH as normally expected. This situation triggered by the selling pressure and the decline in purchases seems to continue for a while. The fall of RES data sometimes below 30 basis points and the decreases in the MACD indicator support this idea.
Chaikin Money Flow also shows us the downward trend. Moving towards the neutral level while writing the news can be regarded as a messenger parameter in the continuity of the decrease. The markers hovering above the candlestick charts in SAR data are another parameter explaining the dominance of the fall.
Although the decline seems negative and does not look like a new boom in the short term, AAVE made its investors smile with its recent increases. The asset, whose current value is $ 442, was almost $ 110 on the same day we passed. As seen in the CMF indicators, the most important problem for the asset that has increased over 300% and the other DeFi protocols we mentioned before is the decrease in demand. These crazy price bursts in DeFi protocols are managing to attract new investors, but as with ATHs, the important asset seems to be the effort of the bulls.
I think a new ATH expectation for these 3 assets again in the short term is a remote possibility. Withdrawals may continue for a while. As the buying pressure will continue for a while, we can see the rise again in the coming days. However, the support points we have determined are important. Assets that are testing below these levels may accelerate their decline.