The third attempt by buyers to break the annoying price range of $700-735 ended on 19 December. The weak wave of growth culminated throughout the week, forming a pin on the daily candle.
In the previous article, we described two price movement scenarios. DeFi composite index chose the first one, it decided to one more time check buyers for strength at $600.
However, something went wrong. The price fall within the triangle began at higher volumes than the last growth wave on 12 December. In fact, in 2 days sellers completely covered the previous efforts of buyers.
On 23 December, sellers managed to break the trend line of the triangle, testing the mark of $495.8. The optimistic situation in the DeFI market has drastically changed. Sellers returned to the liquidity range of $560-575.
If the test of this range on 11 December looked childish and sellers did not make any effort to break it – now the situation is different:
The range of $560-575 is on the verge of a breakthrough
The chart shows that buyers are not as strong as for example on 26 November. At that time they had to absorb a large number of sellers’ offers to restore the chances of a growing trend. Now, although the volumes are higher than last week, compared to 26 November, they are negligible.
Though, buyers allowed the daily candle to close in the critical range. Therefore, the possibility of forming a new local growth trend is still in question. The BTC correction beginning may further upset DeFi composite index investors. In case of loss in the range of $560-575, the next target of sellers is $422.
Analysis of tokens included in the DeFi Composite index
We see no quantitative changes in the composition of DeFi tokens during the week. Traditionally, we present a table that will show which tokens have been most exposed to falling prices:
In the table you can see the 3 main messages, the weakest tokens were LINK, SXP, TRB, BEL and CRV. Their fall was about 40%.
An interesting fact is that the total market downturn took place within one hour. And different Defi tokens have shown themselves differently. For example SUSHI which is not yet included in the DeFi composite index, fell by 50% in an hour.
RUNE, BEL, and UNI tokens were good enough this week. The price fall percentage of these tokens is less than the growth percentage in the previous week. Interestingly, the SNX token stood out, going against the system and showing price growth of 40%.