Local bottom of the DeFi Composite Index.
The new trading week in the DeFi space begins with an attempt by buyers to recover lost territories in the form of price zones. From the last analysis on 5 September, sellers don’t managed to continue lows updating and the DeFi Composite Index price stopped at $615. The last low was set at this mark, but the main resistance and slowdown of the DeFi index price fall was in the range $666-700:
The first attempt of sellers to capture this range was enthusiastic and supported by a local trend. As we can see in the chart, buyers were able to keep the pressure of sellers for several 4-hour candles. As a result the DeFi index price jumped to $800. Pay attention that the next two attempts by sellers to enter the price range $666-700 failed, indicating their local weakness.
Correction of the fall or continuation of a new wave of growth?
At the moment, the DeFi market is showing promise for new growth prospects. However, judging by the index, buyers are not as confident in the projects as it was on 1 September.
To determine whether the current local growth trend is the beginning of a new wave of growth, buyers need to pass $850.
This mark is the main obstacle to the DeFi index price return to its initial range $1060-1100.
The most active coins of DeFi Composite Index.
The main price rebound from the local bottom took place yesterday, 9 September. If we take into account that BTC growth yesterday was 3%, ETH 10%, the DeFi index increased by 19%. Though, not all tokens grow equally positively. For example, LINK, which has the greatest impact on the index increased by only 15%. LEND and YFI added positive dynamics to the index, which managed to grow by 36% and 43% respectively. Their total share in the Defi index was 18%. The most phlegmatic tokens were COMP, KNC, MKR, showing only from 8% to 10% growth. The number of phlegmatic coins was 19.5%.
Redistribution of token weight in DeFi Composite Index.
Today is another day of changing the percentage of tokens in DeFi Composite Index. This time Binance decided to add 5 more tokens. We want to remind that the DeFi index started at the rate of only 10 tokens. Now there are 18 of them.
15% of the total index weight was allocated for new tokens. No significant changes in the DeFi index “old-timer tokens” were detected. A share of weight for beginners was cut out of each token.
It will be interesting to follow the DeFi Composite Index fight at $850. Next week we will see who has the strength to form a medium-term trend.