The decentralized finance DeFi world has seen a boom in the last two years, since the coronavirus has made almost every aspect of life more difficult and uncertain, including finances. This industry has shown that the Crypto market accounted for $2.32 trillion as of the end of September, which means that the DeFi industry has also capitalized here. The total value locked (TVL) in the DeFi protocols increased by more than 20% in just a week, from $113.5 billion towards the end of September, to $137 billion on October 6.
But most of the DeFi coins haven’t shown much strength since the May/June crash, and the bearish September weighed even more on them. Most DeFi crypto coins, such as Uniswap (UNI), Chainlink (LINK), Pancakeswap (CAKE), Aave (AAVE), Maker (MKR), Thorchains (RUNE), etc. have been showing weakness. But, there are some that have shown resilience, so let’s have a look at them.
Tezos (XTZ) Daily Chart Analysis – XTZ Attracting Attention Again
Will Tezos bounce off the 20 SMA or continue the retreat to the 50 daily SMA (yellow)
Tezos was called a ghost-chain for some time, due to the lack of an aggressive marketing campaign, which led to other blockchains leaving Tezos behind. But the introduction of some DEX features, with its Granada upgrade, has attracted attention from investors, and small whale wallets were seen buying big amounts of Tezos, which ranged from $1 million to $21 million on October 8.
But, there was buying before that as well, since the price surged from just above $2, to $9.50, which is above the highs of May. The bullish momentum continued in September as well, despite the bearish momentum in the crypto market, which led to whipsaws last month, which are continuing this month as well.
Tezos has retraced lower now, pulling back to $7, but it is finding support at the 20 SMA (gray) on the daily chart. The price bounced off this moving average, which shows that there is buying pressure, but it has returned to this moving average, so there’s a chance that it might be broken.
Some Swiss banks are expressing interest in Tezos too, with the Swiss branch of the Arab Bank already adding Tezos to its investment portfolio. So, buyers remain in charge in the larger picture, and as soon as it shows signs of reversing higher, we might buy XTZ/USD.
Avalanche (AVAX) Daily Chart Analysis – AVAX Facing the 50 Daily SMA
Will the previous resistance turn into support for Tezos now?
Another DeFi coin has seen some incredible buying pressure in recent weeks, increasing from a low of $9, where it formed a support zone in June/July, to $81, about two weeks ago. That means a gain of around 900% in value in just a few months, which saw it rise above May’s highs, while the sentiment was quite bearish across all cryptos.
Now, AVAX/USD has retreated to the 50 SMA at around $57, where the high was back in May. Despite the retreat, Avalanche is riding the news of a major private token sell, which was announced last week. The amount accounted for $230 million, which awakened investor interest in Avalanche. The dip in this crypto is also looking tempting for buyers, but we will stick to Tezos.
Terra (LUNA) Daily Chart Analysis – LUNA Facing the 2 MAs
Terra Luna also made some major gains from late July until last week, as it increased from around $5 to almost $50, which means a 1,000% appreciation. The previous support above $22 turned into a support zone for LUNA/USD. So, the dips ended in this area for Terra Luna, and this crypto has reversed higher from there. On this retreat, we might see that level again soon, which would be a great place to buy this DeFi coin, but the pullback might even end here this time, since there are two MAs standing at this level.