DeFi Composite Index Knocked on $650-700 Range Door
The DeFi Composite index trading week passed on the same optimistic note. Since our previous analysis, buyers have managed to raise the index price by another 30%. As a result, from 5 November, the DeFi composite index market grew by 80%. Trading volumes have increased throughout the growth. It indicates the real interest of investors in DeFi projects. Proof of this is the locked funds’ growth, which according to Defipulse almost reached the mark $14 billion.
Buyers managed to break the falling channel, in which the index price moved from 12 September. And from 5 November there was no correction of this growth! In the 4-hour timeframe, we see how buyers rush to free themselves from sellers’ clutches and thus leave them no room for movement:
However, now buyers are faced with a real problem – the range $650-700. This liquidity range became a serious problem for sellers in September, when the index price continuously fell. In fact, after testing the price zone $650-700 in late September, sellers felt complete dominance. As a result, a month later we saw a new low $364.1.
Therefore, taking control of this range, buyers will finally prove their strength, signaling about the medium-term growth to the Defi market.
Though, coming down to earth and looking at the chart, we see that the resistance of buyers is considerable. For the critical range confident breakdown, buyers can retreat to the range $560-575. This support will work in case of a slight crypto market correction. In case of serious BTC correction and fixing below $16,775 – the Defi Composite index price will seek support at $465.
The next buyers’ target after fixing above $575 will be the mark $850.
Review of Defi tokens that are the index part
In fact, the situation with the DeFi tokens activity has not changed significantly from the previous article:
As we can see, those tokens that showed excellent growth results last week have not stopped now. Although YFI showed the highest growth rate in two weeks, we would like to highlight the CRV token. During the DeFi market strong fall, this token showed the lowest result of the fall. Nevertheless, in terms of growth, it is in 4th place. Let’s see if the situation inside the DeFi composite index will change next week!
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