The DeFi composite index trading week was held under more than one winner’s flag. Beginning on 8 October, buyers felt the taste of intercepting the initiative, successfully breaking $507, we wrote about in the previous article. On 8 October, the Defi composite index price increased by 12%.
If we analyze the trading history of this index, it is one of the most active days of buyers. This price movement was supported by increased volumes, which showed interest in the index at that time. Defipulse confirmed this fact, showing the growth of the entire Defi space locked funds from $10.35 billion to $11.38 billion.
Buyers’ time lasted until 12 October. During this time, in addition to the price growth, there was a decrease in demand from buyers. The decrease in demand depended in direct proportion to DEFIUSDTPERP price growth.
Another good achievement for buyers was the breakthrough of the channel upper trend line. In fact, since the beginning of the index trading, the price has never gone beyond the red trend line:
It is too early to talk about the final change of the trend. Especially considering that sellers started their game on 12 October, regaining control of the mark $507. Fixing the Defi Composite index price under this mark will serve as a signal to sellers to continue falling. Therefore, the success of buyers depends on the fulfillment of 2 conditions:
• Take control of $507. This fact will start a short-term growth trend.
• Breaking the local range $560-570. This fact will open the way to the critical range of this tool $660-670.
The main battle between buyers and sellers will have to be in the range $660-700. This range historically has been considered the main one, as it concentrates the largest number of volumes and frustrations of investors.
Changing the DeFi composite index composition
This week there were changes in the tokens composition that were included in the index. They removed the Aave LEND token from the index. Instead, they added REN, the RenVM project token. This token has grown by 100% since 7 October, getting very close to its historical high. This token was allocated a share of 3.38%.
Regarding the change in the tokens impact on the DeFi Composite index, we can distinguish YFI, which increased from 7.8% to 10.2%. All other changes fluctuated within 1% and are insignificant.