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Compound, Away, Synthetix Lead Ethereum DeFi Revival

Compound, Away, Synthetix Lead Ethereum DeFi Revival

key takeaways

  • Compound and Ave have gained over 70% since June 18.
  • Synthetix also turned parabolic at the start of the week as its trading volume exploded.
  • If the buy order continues, the comp can reach $63 and AAVE to $94.

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The market capitalization of Compound and Av has almost doubled over the past four days, reaching important areas of resistance.

Ethereum DeFi Token Post Profit

Compounds, aves, and synthetics are on the rise.

It looks like the compound formed a local bottom on June 18 at $26. Since then, the DeFi coin has gained enough momentum to pull off a U-turn and rise above 70%. The compound reached a local high of $44.60, which points to a move higher in the future.

The parabolic stop and reverse, or “SAR,” indicates that the compound’s downtrend has reached exhaustion. Based on the daily chart, the stop and reversal points have moved below the price of the compound, indicating that the trend direction has changed from bearish to bullish. Nevertheless, the DeFi coin has yet to cross another hurdle to confirm the bullish outlook.

The Supertrend indicator currently sits at $47, which is providing stiff resistance. The compound would need to break above this level for the 50-day moving average to move higher towards $63. Failure to break the $47 resistance could result in a brief pullback to $34 before the uptrend resumes.

Source: trading view

The AVE is also showing early downside signs after developing a bullish divergence against the RSI on the daily chart. According to the Tom DeMark Sequential Indicator, a buy signal has appeared in the form of a sequential 13 candlestick, adding credence to the bullish outlook. These technical formations have contributed to the 74% growth that Ave recorded over the past four days.

Now, the loan protocol AAVE token needs to print a daily close above $76 to signal that it is ready to move higher. Overcoming such an important resistance could give the DeFi coin strength to test the 50-day EMA at $94. However, it is worth noting that if Aave gets rejected at the $76 resistance, it could drop to $60.

and price chartand price chart
Source: trading view

Compound and Ava’s bullish momentum comes after Synthetix, a decentralized platform for mining and trading of synthetic assets, posted a brief 100% rally, rising from a low of $1.57 to a high of $3.16 . The recent price action of the Ethereum project could be influenced by the increase in trading volume and the success of a new atomic swap function introduced with the SIP-120 proposal. This feature helps users to trade extensively between different asset classes with minimum slippage.

Disclosure: At the time of writing, the author of this article holds BTC and ETH.

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