Bitcoin

The resurrection of the DeFi ecosystem is driving Celo, Venus (XVS) and Fantom (FTM) prices soaring.

A new report from CoinShares suggests that Bitcoin (BTC) accounted for 97% of total cryptocurrency inflows in 2021.

The recent correction in Bitcoin price doesn’t seem to have scared crypto investors, CoinShares data shows A record $ 1.3 billion in cryptocurrency products flowed in last week. This suggests that investors are focusing on the slumps rather than chasing higher prices.

Daily look at the cryptocurrency market. Source: Coin360

Another area that has made great strides in recent months has been the decentralized financial sector (DeFI). While bond yields are close to zero worldwide, the attractive opportunities that DeFi platforms offer with yield farming and flash credit have caught investor attention. As of January 25, the total was $ 26.1 billion.

The resurrection of the DeFi ecosystem is driving Celo, Venus (XVS) and Fantom (FTM) prices soaring.
The resurrection of the DeFi ecosystem is driving Celo, Venus (XVS) and Fantom (FTM) prices soaring.

Unless the markets panic, there are always certain sections that are in a bull cycle. The tokens selected today have also outperformed the general market in the short term.

Let’s examine some of the fundamental reasons behind these bullish moves and indicate the critical levels to watch out for.

CELO / USD

Transferring money from one country to another with no hassle and without paying high commissions is a necessity in today’s world Celo (CELO) would like to facilitate this process. The project is gradually being adopted as it currently has $ 30 million in circulation.

After the success of cUSD, The platform plans to launch a new stablecoin that will be pegged to the euro over the next two months. Similar to the cUSD, the euro pegged stablecoin will use a basket of crypto assets to closely peg the price to the underlying asset.

Celos connection with KardiaChain, Kadena and Paychant open up new possibilities for their users. The community also applauded Celo’s listing on Binance on Jan 5th, and the altcoin soared on the news.

Celo recently announced a rewards program and From January 25th, users who meet an average monthly minimum credit of cUSD will receive rewards in CELO in order of arrival.

In addition to the products, the credibility of the project is also important for its success. In that regard, Cello’s inclusion on the World Economic Forum Council may have had an extremely positive impact on the global future of cryptocurrencies.

The price of CELO rose from $ 1,752 on Jan. 12 to an intraday high of $ 3,922 on Jan. 22, up 123% in ten days. The token currently forms a rounded basic pattern that will complete with a breakout and close above $ 4.50.

Daily chart of the CELO / USDT pair. Source: TradingView

The CELO / USD pair has started a new uptrend, making a series of higher highs and lows. This suggests a bullish sentiment and traders are buying the dips. The rising moving averages and RSI in the overbought zone show that the bulls have the upper hand.

The pair has no major resistance until it hits $ 4.30, but bears are unlikely to give up easily. They will try to stop the current upward move in the USD 3.60-3,922 zone. If successful, the pair could fall to the 20-day exponential moving average ($ 2,528) which is likely to be stepped in.

A strong rebound above the 20-day EMA will keep the uptrend intact and the bulls will try again to push the price down to $ 4.30. A breakout and close above the USD 4.30-4.50 resistance zone could begin the next leg of the uptrend.

This bullish position will be invalidated if the pair breaks below the 20-day EMA. If so, the pair could hit the 50-day SMA ($ 1.95).

XVS / USD

The DeFi ecosystem remains strong even as major cryptocurrencies go through a major correction. This shows the users’ trust in the emerging ecosystem and the ability of projects to generate much higher returns compared to altcoins.

The log of Venus (XVS) is entirely part of Binance’s smart chain, so it hasn’t suffered the adverse effects of high gas commissions that negatively impacted DeFi projects earlier this month. This could have drawn some traders to Venus.

Decentralization is one of the key factors in the crypto space, and Venus completed the transition on January 15th. The management of the project is now in the hands of the community, which is a welcome step in the right direction. The positive results of the past few days may have resulted in your total locked value reaching $ 400 million.

XVS has risen from an intraday low of $ 3,945 on Jan. 18 to an intraday high of $ 12.90 today, a rally of 227% in a short period of time. Momentum accelerated after the bulls managed to push the price above the stiff overhead resistance zone between $ 5 and $ 6 on Jan. 23.

Daily chart of the XSV / USDT pair. Source: TradingView

Some reserve margin was seen on Jan 25, but the bulls bought the dip and pushed the price above $ 9.89 earlier today to resume the uptrend. The double digit move seems to have upset the bulls, who have continued to buy at higher levels.

The XVS / USD pair could rise to $ 15 now and then to $ 20 later. However, the recent rally has pushed the RSI deep into overbought territory, increasing the risk of a correction or consolidation.

If the price deviates from its current level, it may find support at $ 10. A strong rally from this level suggests that previous resistance has turned into support and the bulls will try to resume the uptrend. Conversely, if the price falls below $ 10, the correction could lower the price and bring it down to $ 8.

FMT / USD

FantomFinance (FTM) is another DeFi project that acts as a bright star and takes the market to a higher level.

Fantom recently partnered with Injective Protocol which is expected to increase adoption. since users can access assets in both chains. Together both teams plan to bring synthetic products New and innovative on the market, taking advantage of the growing popularity of trading in plastics and decentralized derivatives.

This gives traders the opportunity to take advantage of the trending trading markets instead of getting stuck in a single asset class. The recent addition of FTM to SushiSwap also seems to have been welcomed by the community.

FTM rose from an intraday low of $ 0.0241 on Jan. 22 to an intraday high of $ 0.0678 today, rallying 181% in five days. The bulls had pushed the price above the $ 0.05665 resistance on January 24th and 25th but failed to sustain higher levels.

Daily chart of the FMT / USDT pair. Source: TradingView

The bears attempted a correction on Jan 25, but the bulls weren’t in the mood to lower their arms. They aggressively pushed the price to a new all-time high earlier today. However, the strong rally over the past few days has pushed the RSI deep into overbought territory, which could lead to a correction or consolidation.

If price is deviating from current levels but bouncing off support at $ 0.05665, it indicates that previous resistance has been converted to support. The FTM / USD pair may begin the next leg of the uptrend which could hit $ 0.0850.

Conversely, if the bears cut the price below $ 0.05665, the pair could drop to $ 0.05 and then to $ 0.045. A break below this support could indicate a trend reversal.

The views and opinions expressed here are those of the author only and do not necessarily reflect the views of Cointelegraph. Every investment and business move involves risks. You must do your own research when making a decision.

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